On May 31, 2016, the Honourable Cameron Friesen, Minister of Finance, presented the 2016 Manitoba budget. This year’s budget, referred to by the Minister as “Correcting the Course”, focuses on changes to lower taxes, improve services and strengthen the economy.
This year’s budget calls for enhanced enforcement and administration measures under The Retail Sales Tax Act. In addition, the following changes to retail sales tax become effective June 1, 2016:
- Businesses located out of the province will now be required to register for retail sales tax when inventory of taxable goods is held by them in Manitoba and is available for sale in the province;
- Kitchen cabinet manufacturers can now choose to use a simplified formula of 70% of the contract price of manufacturing and installing residential cabinets, excluding GST and sales tax paid on materials, to determine sales tax payable on their manufacturing costs; and
- The exemption for temporary museum and art gallery exhibits brought into Manitoba will now be expanded to include exhibit acquisitions of a permanent nature provided the museum or art gallery has more than 50% of their revenue generated from grants, government funding or donations.
Further details on the 2016 Manitoba budget are available from the Manitoba Ministry of Finance web site at: http://www.gov.mb.ca/finance/budget16/index.html
