Manitoba Holds Out against the HST

According to the Winnipeg Free Press, the government of Manitoba is in no hurry to jump onto the Harmonized Sales Tax (HST) bandwagon.

Premier Selinger made it clear that his government will not be joining provinces such as Ontario and B.C. in adopting the HST any time soon. In a news release on December 15, 2009, the Manitoba government stated its reasons against adopting the HST. The main concern was for the excessive tax burden on the consumer – an additional $400 million a year.

In fact, after considering the tax savings from the business sector, it’s estimated that the proposed harmonization may in fact cost the province about $134 million in lost revenue every year. Small wonder about the government’s position.

Manitoba is now one of the four provinces in Canada that hasn’t brought in an HST, including PEI and Saskatchewan. Alberta has no provincial sales tax and so isn’t a candidate for HST.

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