Manitoba to cut PST from its grocery stores


The food professor called it ‘more of a political signal than a structural solution’

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Manitoba Premier Wab Kinew is ready to alleviate some of the financial burden from the shoulders of the people in his province.

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He made the “breaking Budget Day” announcement ahead of Tuesday afternoon’s unveiling of his NDP government’s 2026 provincial budget.

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“No tax on groceries. That’s right, we’re taking all provincial taxes off food from the grocery store,” he revealed in a post on X.

Food and drinks that are considered “basic groceries” — including most meat and dairy products, eggs, fruits and vegetables, oil and coffee — are already exempt from the tax in Manitoba.

But Manitobans currently pay a 7% provincial sales tax on prepared food and drinks sold for immediate consumption.

So think of those ready-made meals and items from supermarket hot tables like “rotisserie chickens, salads, a case of Bubly — all the stuff that you’re grabbing on the way home when you’re in a rush and you gotta try and put a meal on the table for the family,” Kinew announced in a post on social media on Tuesday morning.

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But how much will Manitobans really be saving?

How impactful is the move?

“Removing PST from groceries in Manitoba is symbolically powerful, but economically modest,” Sylvain Charlebois told the Toronto Sun.

“Most essential grocery items were already tax-exempt, so the real impact will be felt on prepared and convenience foods — helping families at the margin, singles and seniors who do buy many ready-to-eat products, but not fundamentally changing food affordability.”

The food professor called it “more of a political signal than a structural solution,” adding that a more powerful move would be “if Ottawa eliminates the GST.”

“Shrinkflation has also created more taxable snacks at the grocery store, and many are unaware,” Charlebois noted.

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“Other provinces could follow, especially where affordability is front and centre, but the fiscal room is limited — and eliminating sales tax won’t offset the broader drivers of food inflation like energy, labour, and supply chain costs.”

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Kinew is positive it’s the right move for the people of his province.

“After our budget passes — assuming it passes by July 1 — that will all be tax free,” Kinew added with a grin.

He captioned his video: “Real savings for real life. Right where it matters most. Making life more affordable for Manitobans.”

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Is Ontario next?

Manitoba’s announcement comes two days before Ontario is set to release this year’s budget on Thursday.

Premier Doug Ford is being urged to “improve his management” of Ontario’s debt, which has surged dramatically since he was first elected, Lorrie Goldstein reports, citing a new study by the Fraser Institute.

While inflation and population growth helped reduce per capita debt load, the think tank said that the Ford government “maintains higher debt per person levels than any other Ontario premier, except Kathleen Wynne.”

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