Manitoba 2010 Budget: Business Tax Measures

http://www.gov.mb.ca/finance/taxation/bulletins/2010budget.pdf

Manitoba PST Rate: - 7%

Manitoba’s five-year economic plan helps the province continue to weather the worldwide economic recession while positioning Manitoba for growth and prosperity in the years ahead.

Budget 2010 projects a summary shortfall of $545 million, which includes core government departments, Crown corporations and pension obligations.  A payment of $96 million will be made to start paying down principle and interest on the debt incurred as a result of the economic downturn.

Over the course of the five-year plan, the deficit will be eliminated and the province will return to balance by Budget 2014.

Independent forecasters are projecting economic growth of 2.5 per cent this year and three per cent next year for Manitoba.

Retail Sales Tax

The 2010 budget states that Manitoba has declined invitations to harmonize its sales tax with the federal goods and services tax. It proposes the following retail sales tax (RST) changes:

Corporate Income Tax Rate

Small Business Income Tax Rate

Corporate Capital Tax

The budget does not revise capital tax rates. Capital tax:

Research and Development Tax Credit

Small Business Venture Capital Tax Credit