Reversal of NDP ‘hidden tax hike’ to increase affordability: Pallister
A re-elected Progressive Conservative government will ensure small business owners are treated with greater fairness by rolling back the NDP tax interest rate hike and reducing the surcharge by half, Manitoba PC Leader Brian Pallister announced today.
“Unlike the NDP who never met a tax they didn’t like or a tax they didn’t hike, we are committed to making life more affordable for families, households and small businesses across Manitoba,” said Pallister. “We will roll back this unfair NDP hidden tax increase.”
Like they did with the PST and many other taxes, the previous NDP government boosted the tax interest rate surcharge on small businesses to the highest level of all the provinces. Currently, the province charges interest of prime plus six per cent on taxes owing – almost ten per cent at existing rates – a punitive level for businesses that can make honest errors in trying to administer the provincial tax code.
Pallister stated a re-elected PC government will roll back the NDP tax interest rate hike and reduce it to prime plus three per cent.
“Small and medium-sized businesses are job creators and the backbone of our economy,” said Pallister. “A re-elected PC government will ensure small business owners are treated with the fairness and respect they deserve.”
The interest rate formula is established under the Interest Rate Regulation, under The Financial Administration Act. It applies to taxes collected and administered by the provincial government, like PST and payroll taxes, making this a matter primarily impacting small businesses. Income taxes are collected by the federal government and subject to their tax payment interest policies.