Manitoba’s budget confirms elimination of Small Business Tax

(Mar. 26/10) A morsel of good news in Manitoba’s 2010 budget is the government’s re-commitment to eliminate the Small Business Tax in December, which will save $14 million for small businesses across the province.  The 1% Small Business Tax is currently collected on eligible revenues exceeding $400,000.

CRFA noted that while any business tax reduction is good news, any resulting savings for foodservice operators will be wiped out if the government increases the minimum wage this year.

In its budget, the province also announced a return to deficit spending for the foreseeable future, stating it will not be able to balance its books until 2014.  Finance Minister Rosann Wowchuk indicated the government would amend its balanced budget legislation to allow for these deficits during tough economic times.  Total government spending will increase by 5%, with little corresponding benefit for business owners or taxpayers.