Budget In Brief
Budget In Brief - (PDF size 1,609 k)
The Bottom Line:
Lower Taxes for Manitobans
Manitoba’s record of long-term tax relief is showing results. Last year,
our province enjoyed the second-highest retail sales growth in Canada
and the highest level of capital investment growth in the country.
Budget 2008 builds on this momentum with additional tax relief for
families and businesses.
Personal Taxes
- The Education Property Tax Credit increases to $600 – saving Manitobans an additional
$24.5 million annually.
- The Farmland School Tax Rebate increases to 70% – saving farmland owners over $30 million
in 2008.
- A Primary Caregiver Tax Credit will provide eligible Manitobans with as much as $1,020
in benefits annually.
- The basic personal exemption will increase by $100 – reducing personal income tax for
every taxpayer.
- Tax brackets and rates are being adjusted: the lowest bracket rate will fall to 10.8%, the threshold for
the middle bracket will increase to $31,000 and the threshold for the top bracket will
rise to $67,000.
Business Taxes
- The small business tax rate, already the lowest in the country, will be further reduced to 1% – saving
Manitoba businesses an additional $9.7 million a year.
- The general Corporation Income Tax rate will be reduced to 13% in July 2008 and to 12% in July 2009 with a
goal of reducing it to 11% in subsequent years.
- The Corporation Capital Tax for manufacturers and processors will be eliminated July 1, 2008 –
freeing up $25 million for these businesses.
- The Manufacturing Investment Tax Credit will be extended to the end of 2011.