News and Insights

Tax Alert | Manitoba Budget 2024

Nouvelles fiscales avr. 04, 2024

On April 2, 2024, Finance Minister Adrien Sala presented Manitoba’s 2024 budget. Projecting a deficit of $796 million for 2024–25, the recently elected government’s first budget focuses heavily on measures designed to upgrade the province’s healthcare system and help residents cope with the rising cost of living. Significant investments are also planned to support education, promote community safety, and encourage sustainable, low-carbon economic development.

In recent weeks, the government had intimated that this year’s budget would include important tax initiatives—as promised in its election platform—and the budget announcement delivered on some of those expectations. In addition to several personal income tax reduction measures, this year’s budget includes more than a few noteworthy tax changes, as summarized below.

Gas Tax Measure 

As expected, the government announced the extension of the provincial fuel tax holiday until September 30, 2024. Originally put in place for the period between January 1 and June 30, 2024, the gas tax rate on gasoline, diesel, and marked gasoline under this holiday is zero cents per litre. Marked diesel is unaffected by the holiday and remains exempt from tax. 

Vaping Product Taxation 

The province intends to join the federal government’s coordinated vaping product taxation framework, with a provincial duty expected to be in place on January 1, 2025. As in other provinces that have joined the framework, administration and enforcement of the coordinated vaping duty will be handled by the federal government.

Once implemented, provincial excise duty rates of $1 per two millilitres for containers with less than 10 millilitres of vaping substance and $5 for the first 10 millilitres plus an additional $1 per 10 millilitres, or fraction thereof, for containers holding more than 10 millilitres of vaping substance, will apply to vaping products. These rates will be equal to the federal excise duty base rates that have applied to vaping substances since October 1, 2022. 

Retail Sales Tax Measures 

This year’s budget proposes various changes to Manitoba’s retail sales tax (PST) system, including measures to:

  • Increase the registration threshold from $10,000 to $30,000 in taxable sales (which will be consistent with the small supplier threshold for GST/HST purposes), retroactive to January 1, 2024;
  • Eliminate the sales tax commission currently available to businesses with less than $3,000 in reportable sales tax in a filing period, effective for reporting periods ending after April 2024;
  • Eliminate PST from the construction of new affordable housing units (with further details forthcoming);
  • Clarify that interior window coverings are considered tangible personal property rather than a fixture to real property for PST purposes;
  • Ensure sales of electricity through electric vehicle chargers are not subject to PST when the supplier has already paid tax on the electricity;
  • Make refunds available where vehicles are purchased in Manitoba and subsequently sold outside the province within six months; and
  • Ensure the purchase price is used where it exceeds a vehicle’s appraised value for PST refund purposes. 

Property Tax Measures 

While the province will maintain its school tax rebates at present levels for the 2024 taxation year, it has announced plans to replace these rebates and the existing Education Property Tax Credit with a Homeowners Affordability Tax Credit for 2025. The new credit will offer up to $1,500 in property tax relief for principal residences in Manitoba. Note that school tax rebates will be retained for farm properties, at the current rate of 50%, but be eliminated for all other commercial properties in favour of a new model to help fund education.

The government also plans to simplify the property tax credit system currently in place for seniors.

Corporate Income Tax Measures 

As part of this year’s budget, the province announced the introduction of a Rental Housing Construction Tax Credit, which will provide $8,500 for the construction of new, market-rate rental units and $13,500 for qualifying affordable units maintained for at least 10 years. This new credit will be fully refundable for non-profit organizations, with the first $8,500 per unit refundable for all other organizations. To be eligible for the credit, construction must begin on or after January 1, 2024.

The province also proposed a few other interesting corporate income tax changes in the budget, including:

  • Elimination of the Data Processing Investment Tax Credit, effective for 2025;
  • Extension of the Cultural Industries Printing Tax Credit for one year to December 31, 2025; and
  • Technical amendments to clarify the timing of claims for eligible expenses under the Interactive Digital Media Tax Credit and streamline administration of the program for qualifying video game corporations.

Tax Administration Measures 

Among other administrative measures and technical clarifications, the government has announced that the audit period for taxes administered by the province will be legislated to a maximum of six years from the notification date. However, this time limit will not apply where the taxpayer makes a misrepresentation attributable to neglect, carelessness, or willful default, or fails to remit taxes collected. Further amendments will require the issuance of a Notice of Assessment after all tax audits are completed.

In addition, effective May 1, 2024, the fees currently in place for tax clearance certificate applications and advance ruling requests will be eliminated.

More Information

Further information on Manitoba’s 2024 budget may be found on the province’s website here.

For information on new and extended government funding initiatives included in this year’s Manitoba budget, please navigate to Mentor Works news here.

To read key updates from all of Canada’s 2024 provincial budgets, please visit our Key Changes | 2024 Canadian Federal and Provincial Budgets page.

If you have any questions about how these proposed changes might impact your organization, please do not hesitate to contact the Ryan TaxDirect® line at 1.800.667.1600 or