News and Insights

Manitoba Budget 2010

Tax Development Mar 23, 2010

On March 23, 2010, Finance Minister Rosann Wowchuk presented the 2010 Manitoba Budget.  This budget entitled “Manitoba Moves Forward” introduces a five-year economic plan that will focus primarily on tackling the budget shortfall while at the same time continuing to invest in front-line services such as health care, education and training, policing and supports for families.  In an effort to protect Manitoba families, Manitoba has declined invitations to harmonize their Retail Sales Tax with the federal GST.  

Manitoba’s budget contains only a few significant commodity tax changes.        

Retail Sales Tax  

Registration Requirements  

Small businesses with annual taxable sales under $10,000 will no longer be required to register for Retail Sales Tax.  Businesses under this sales threshold may choose to pay Retail Sales Tax on their purchases rather than collect Retail Sales Tax on their sales of taxable goods and services.  This measure is intended to reduce paperwork and administration costs for small businesses in Manitoba.     

Exemption for Shredded Tires  

Effective April 1, 2010, shredded tires will be exempt from Retail Sales Tax when purchased by municipalities for use in municipal works.  

Expanded Exemption for Rockbolts, Shotcrete and Wiremesh  

Rockbolts, resins, shotcrete, wiremesh, washers, rockbolt straps, and wire rope for rockbolting are currently exempt when used in mining stopes.  Effective June 1, 2010, these items will also be exempt when purchased for use at a mine site.  

Vehicle Valuation Program  

Effective June 1, 2010, private sales of used motorcycles, snowmobiles and all terrain vehicles will be valued using the same valuation program that is in place for purchases of used vehicles.  As a result, when these vehicles are sold privately, Retail Sales Tax will be payable on the greater of the purchase price or the current established resale value.  
Tanning Services  

Effective July, 1, 2010, all tanning services (except for air brush and spray-on tanning services) will attract Retail Sales Tax.  Prepaid tanning services invoiced and paid for prior to this date, will not be subject to the tax regardless of when the actual tanning services are supplied.  

Tobacco Tax  

Effective at midnight on March 23, 2010, the tax rates on various tobacco products will increase by two cents per unit.  The tax rate for cigars will remain unchanged.   

Gasoline and Motive Fuel Taxes  

Fuel Dye Concentrate  

Fuel that is used for exempt purposes is dyed so this fuel can easily be identified as exempt fuel.  Effective at midnight March 23, 2010, Manitoba Finance will no longer supply or assume the cost of fuel dye concentrate used by fuel distributors to mark fuel for exemption purposes.  

Exemption for Biodiesel replace with Production Grant  

Effective April 1, 2010, the current motive fuel exemption for biodiesel will be replaced with a production grant.  With the repeal of the motive fuel exemption for biodiesel all biodiesel blends will be subject to the motive fuel tax at 11.5 cents per litre.   Further information on the Manitoba budget may be found on the province’s web site at: