The Canadian Federation of Independent Business has called for small businesses in Manitoba to be granted more direct tax relief in light of the provincial government’s newly announced ~$100 million support package.
The federation urged the Manitoba government to increase the small business corporate tax threshold from $500,000 to $700,000 and to eliminate RST from capital expenditures.
“Small businesses are being asked to navigate tariffs, higher input costs and weaker consumer demand, and we don’t know how long this trade uncertainty will last. Providing real tax relief would put money directly back into the hands of entrepreneurs and give them the flexibility to weather this storm, invest and keep people employed,” Solberg said.
The CFIB praised the government’s support package, which is intended to help workers, businesses, and producers through the volatile trade landscape created by the new US tariffs. Brianna Solberg, CFIB’s director for the Prairies and Northern Canada, highlighted the Trade Resilience Loan Program and the deferral of RST and payroll tax payments over September 1-December 31.
The organization also lauded the Tariff Workforce Stabilization and Youth Employment Program, which will grant wage subsidies to employers, and the provision of funding for Manitoba alcohol producers and craft breweries’ interprovincial trade missions.
“Helping businesses retain workers, create opportunities for young Manitobans and reach customers elsewhere in Canada will be increasingly important as uncertainty continues in the U.S. market. Reducing barriers to interprovincial trade will also help Manitoba businesses diversify and build greater resilience over the longer term,” Solberg said in a statement.
However, Solberg said there needed to be “genuine, permanent cost relief” for small businesses.
“A loan still has to be paid back, and a tax deferral is still a tax bill that eventually comes due,” Solberg said.
The targeted support package was unveiled by Manitoba’s business, mining, trade and job creation minister Jamie Moses and agriculture minister Ron Kostyshyn on August 28 in acknowledgment of the US tariffs’ impact on industries like manufacturing, agri-food, transportation, construction, wholesale trade, aerospace, forestry, steel, machinery, beverages, and related supply chains. The package will help with cash flow pressures, worker retention, the navigation of new export opportunities, and market diversification.
The funds are allocated as follows:
- $50 million to the Manitoba Trade Resilience Loan Program for repayable working capital financing at low interest rates
- $500,000 to boost the Export Support Program
- $250,000 to improve current export advisory services
- $500,000 to expand the Canadian Manufacturers and Exporters’ Made-in-Manitoba initiative
- $500,000 to Manitoba alcohol producers and craft breweries for interprovincial trade missions
- $13.7 million to launch the Tariff Workforce Stabilization and Youth Employment Program
Moreover, the Manitoba Agricultural Services Corporation will bolster the Operating Credit Guarantee Program to $3 million for individuals, corporations, and partnerships. The guaranteed portion of loans under both the Operating Credit Guarantee Program and Diversification Loan Guarantee program will also be increased from 25 percent to 33.33 percent.
MACS will expand eligibility for its Diversification Loan Guarantee Program to grain and oilseed operations and count “investment in primary agricultural infrastructure in Manitoba” as an eligible purpose. The loan amount under this program will also rise from $1.5 million to $5 million.
Moreover, the organization will collaborate with Manitoba honey producers to develop and implement sector-specific supports.