Manitoba is cutting its provincial sales tax to 6% and setting a flat rate green levy.
The plans were announced Thursday by Premier Brian Pallister and are due to be introduced on July 1. The premier said that Manitoba is taking strong action on climate change and implementing a flat Green Levy to replace the federal backstop carbon tax.
Compared to the rising federal carbon tax, the flat $25-per-tonne Green Levy will save the average Manitoba household $200 in 2022, the government calculates. Cutting 1 percentage point from the PST will save $325 each year from average household budgets.
“Unfortunately, the federal government ignored our request to work together as a true partner in tackling climate change, so we have no choice but to act now to protect Manitobans from the rising federal government carbon tax they are bringing in this year,” said Pallister. “Ottawa has provided special exceptions and exemptions to many other provinces but refused to consider Manitoba’s significant clean hydro investments.”
Greenhouse-gas emissions in Manitoba will be reduced by at least two megatonnes (MT) over the five-year carbon savings account period set in legislation, a doubling of the original one MT goal fixed last June.
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