Canada: First reading, 2020 budget bill with tax measures (Manitoba)

Canada: First reading, 2020 budget bill (Manitoba)

Bill 2—legislation that includes most of the tax measures from Manitoba’s 2020 budget—on 9 October 2020 received first reading.

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Bill 2 contains corporate income tax measures originally included in previous Bill 34 (that “died on the order paper” when the provincial legislature was prorogued on 6 October 2020) as well as measures that would:

  • Make permanent the manufacturing investment tax credit
  • Enhance the child care centre development tax credit
  • Enhance the film and video production tax credit
  • Extend the mineral exploration tax credit to 31 December 2023
  • Extend the cultural industries printing tax credit to 31 December 2021
  • Extend the community enterprise development tax credit to 31 December 2021

Bill 2 also would increase the thresholds for the province's health and post-secondary education tax levy (payroll tax); would eliminate probate fees as announced in the 2020 budget; and would harmonize the rules in the province with certain federal deadline and time-limit extensions.


Measures not included in Bill 2

Manitoba Bill 2 does not include the following measures:

  • A proposed reduction of the provincial sales tax rate to 6% (from 7%)
  • A reduction in the refundable portion of the manufacturing investment tax credit to 6% (from 7%)
  • Introduction of the green levy

These measures were originally included in previous Bill 35, and according to the provincial government, were delayed until further notice in light of the coronavirus (COVID-19) pandemic.

Read an October 2020 report prepared by the KPMG member firm in Canada 

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