Pallister promises to move forward with personal services PST cut, reduction to education property tax

A long-promised end to PST on personal services such as haircuts and salon services will be moving forward, along with the province's first steps of eliminating the education property tax.

The Progressive Conservative government's plan to cut PST tax on personal services was promised in 2019 as part of the $2,020 Tax Rollback Guarantee.

Now Manitoba Premier Brian Pallister said the province's Budget 2021 will move forward with the tax rollback this year.

"Today, what we're announcing is the keeping of a commitment that we made, that we think is important to move Manitoba to a stronger position post-COVID," Pallister said. "This is a key part of that, and I think it's made more urgent by the realities than it was even before."

Pallister said the province will begin to phase out the education property tax, which he said will affect 658,000 ratepayers who have residential farm or commercial properties in Manitoba. The premier said these ratepayers will begin to receive rebate cheques this year.

School divisions have been told to freeze their education property taxes this year. Pallister said the province will be providing a Property Tax Offset Grant equivalent to a two-per-cent property tax increase in 2021.

Pallister had few details as to when the tax cuts and reductions will be taking place. He said Manitoba's Finance Minister will have more to say when the province's 2021 budget is released next Wednesday.

Several measures of the province's $2,020 Tax Rollback Guarantee are already in place.