‘Making life a little bit easier’: PST cut for most food items in Manitoba By: Gabrielle Piché and Scott Billeck Posted: 11:16 AM CDT Tuesday, Mar. 24, 2026 Last Modified: 6:51 PM CDT Tuesday, Mar. 24, 2026 Updates

More groceries in Manitoba will be provincial sales tax-free starting Canada Day.

Sandwiches, cheese, samosas, pop — all food and drinks (with one per cent or less alcohol per volume) — will be exempt from the seven per cent retail sales tax, the Manitoba government announced in Tuesday’s budget.

Government officials estimate the cut will save Manitoba families up to $100 per year.

“We’re making life a little bit easier for parents who are picking up that rotisserie chicken to feed their kids after hockey practice or workers who want to grab a prepared salad,” Finance Minister Adrien Sala told reporters.

Meat, vegetables, fruit and dairy products were already exempt from PST. The budget extends the exemption to prepared meals, candy and other snack foods.

“Getting ready for a birthday party, you’ve got to buy those cans of pop and the chips. That’s part of every family’s expenses,” said Sala.

Alcohol, dietary supplements and non-food items — such as paper towels and dish soap — will continue to be taxed provincially.

Manitoba’s revenue will drop $24 million due to the tax change, the budget outlined. It comes as the province forecasts a deficit of $498 million for 2026-27.

In Manitoba, food inflation rose 5.9 per cent year-over-year in December. It was the second-highest inflation rate across the country, Statistics Canada data show.

Sala pointed to other grocery-specific initiatives the New Democrats have announced, including legislation targeting differential pricing and a price freeze on one-litre cartons of milk.

The tax cut is another “lever” the government is pulling to lower grocery bills, he said.

Roughly 10 per cent of items people buy in a given week are subject to PST, said John Graham, the Retail Council of Canada Prairies government relations director.

Graham estimated the tax cut will affect about one-third of those items. He said between 83 and 93 per cent of grocery store products won’t be subject to the provincial tax.

Kate Kehler called the tax cut too broad.

“It goes to everybody whether they need it or not,” the Social Planning Council of Winnipeg’s executive director said. “(The government is) taking money away that they need to spend on programs.”

Molly McCracken, director of the Canadian Centre for Policy Alternatives’s Manitoba chapter, agreed, saying the $24 million could’ve been used to increase employment and income assistance rates.

“Upper income folks don’t need that break in the PST,” McCracken said.

Eliminating the sales tax on more food items was something Harvest Manitoba pitched in its pre-budget submission to the provincial government.

“For those folks that are on the margins, for whom $100 one way or the other… can have a huge impact, initiatives like this can be very important,” chief executive Vince Barletta said.

Harvest Manitoba has seen 50,000 to 60,000 food bank users monthly in recent months. It more than doubles the visitor count from four years ago, Barletta said.

Chuck Davidson, president of the Manitoba Chambers of Commerce, doesn’t believe the tax break will greatly impact businesses. It’s “good for consumers,” he said.

“Businesses are also challenged with that affordability,” Davidson said. “We understand where the government was going, in regard to affordability for the average Manitoban. We would have liked to have seen some measures as well for businesses.”

Restaurants and their employees are put at risk by the tax exemption, Restaurants Canada’s president said.

“Manitobans should not be taxed on rotisserie chicken sold in a restaurant if the same product is going to be exempt from PST in a grocery store,” said Kelly Higginson in a statement.

Restaurant meals will appear more expensive to consumers since they’re still subject to the tax, she added.

At a south Pembina Sobeys Tuesday afternoon, shoppers were just learning that the PST would be removed from most groceries.

“Every penny the government takes from us, I care about,” said Theresa Derksen, 77, who noted she relies on Old Age Security and CPP while still working to make ends meet.

“As a single parent, I really didn’t have an opportunity to amalgamate any money for years to come. So what I’ll say is the less they can put on people, the better it is.”

Garth Niven, meanwhile, was unloading a cart full of groceries — including items such as Coca-Cola and Perrier water set to become PST-exempt on July 1 — and said he is in a fortunate position not to worry too much about grocery taxes.

Niven said his focus lately has been on where products are made, adding he avoids buying American goods.

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“But I understand the move (to take off the PST), and it will be good for so many people,” he said.

He described the change as a positive short-term solution but questioned what might happen if the tax is reintroduced.

“Can you really practically put (the tax) back on?” he said. “It’s like the gas tax holiday. They took it off and everyone was ecstatic. Then you take it off, prices jump again, and everybody is unhappy.”

— with files from Carol Sanders

gabrielle.piche@winnipegfreepress.com

Gabrielle Piché
Reporter

Gabby is a big fan of people, writing and learning. She joined the Free Press business beat in 2021.

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Scott Billeck
Reporter

Several wise folks — ok, ok, journalism types — once told Scott he better make sure he can report on news before he learns to write about sports. In what can only be described as a minor miracle, he listened.

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