WINNIPEG -- Manitoba Finance Minister Greg Dewar is promising a small business tax cut, but won't rule out increasing other taxes as the government tries to end a string of deficits.
Dewar says the government has "no intention" of raising the provincial sales tax again. A 2013 increase to eight per cent from seven caused the NDP government to plummet in opinion polls.
But Dewar left the door open Tuesday when asked if other taxes might be increased in next year's budget.
"We're reviewing all of that. Obviously, last year for example, we did raise the tobacco tax. Again, we're reviewing all of our options."
Dewar made the comments at a small chocolate store, where he promised to raise the amount of money businesses are allowed to make before paying corporate income tax. The threshold is now $450,000 a year and Dewar said he would increase it to $500,000 in 2017 -- months after the provincial election slated for April 19, 2016.
The Opposition Progressive Conservatives accuse Dewar of having secret plans to increase other taxes to pay for millions of dollars in promises the government made in last month's throne speech -- everything from new infrastructure projects to thousands of new child-care spaces.
"While the premier and his colleagues are promising all these gifts, the bill is going to come later and it's not going to go to them," Tory Leader Brian Pallister said.
"It's going to go to Manitobans, so Manitobans deserve to know in advance -- where is the bill going to hit them?"
The 2013 sales tax increase was a controversial move by the NDP government, which gained power in 1999. The New Democrats had to rewrite the province's balanced budget law, which normally requires a referendum before any increase in sales, income or corporate payroll taxes.
The Tories held up the move in the legislature for months, public anger caused the government to plummet in opinion polls and five senior cabinet ministers challenged Premier Greg Selinger's leadership.
Selinger and Dewar have both said they do not want to go through that experience again. Pallister said the NDP might try other tax manoeuvres that are not subject to a referendum, such as applying the provincial sales tax to items that are now exempt.
Pallister asked Selinger in question period Tuesday to specifically rule out broadening the sales tax. Selinger replied by promising to keep Manitoba affordable while protecting front-line services.
"We will keep Manitoba one of the most affordable places ... when it comes to the cost of post-secondary education, when it comes to the cost of going to a daycare centre."
