Manitoba budget passes key vote as premier hints tax cut on ready-made food items may be expanded | CBC News


Manitoba budget passes key vote as premier hints tax cut on ready-made food items may be expanded | CBC News

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The 2026 budget passed a key vote Thursday night, while Premier Wab Kinew is hinting the Manitoba government may broaden a tax cut on ready-made food items — but not as much as some are demanding.

Most basic food items, including milk, meat and produce, are already tax-exempt, and the government’s recent budget includes plans to broaden the exemption to all food sold in grocery stores as of July 1.

That would mean snacks, ready-made meals and soft drinks would be tax-exempt as well, as long as they are sold in grocery stores.

To qualify as a grocery store, a vendor must meet certain conditions, including a minimum size. Owners of restaurants and convenience stores have said they should be included as well because they sell the same products and would be at a disadvantage.

Kinew told CBC he’s looking at extending the tax break to smaller stores but didn’t provide details.

“I think what we’re looking at is the mom-and-pop stores, and honestly, this is folks in the tax branch who come up with these definitions,” Kinew told CBC News on Thursday.

“This is about rotisserie chickens. This is about prepared salads. I want people to eat healthy, right? And I’m not sure which of those options are at 7-Eleven. I can tell you every grocery store, many mom-and-pop stores, will have those healthier options.”

A man in a grey suit, blue shirt and blue tie holds a blue folder while speaking in a government legislature.
Progressive Conservative Leader Obby Khan says the province’s current plan wouldn’t save Manitobans much money. (Bryce Hoye/CBC)

The Opposition Progressive Conservatives said the tax should be on a level playing field but the NDP government’s current plan will favour big-box grocers.

“There’s no reason why you should discriminate,” Tory Leader Obby Khan said.

The tax break also wouldn’t save Manitobans much money, Khan added. The Tories recently produced a receipt from a shopper and said the man had spent $109 on groceries. Because most of the items are already tax-exempt, he would save only two cents under the planned tax cut.

Kinew is also considering another cut to the provincial fuel tax.

He told the legislature this week he may further reduce the tax, in addition to a reduction in 2025, to help people with rising fuel prices. He told CBC he would take about a month to decide and see whether fuel prices decrease to near normal levels.

The government’s budget passed a key vote in the legislature Thursday evening and was supported by Bob Lagassé, who quit the PC caucus last month and sits as an Independent.

Lagasse said he voted for the budget because it includes money for a new school in his Dawson Trail constituency, east of Winnipeg.

“It wasn’t about the PCs. It wasn’t about the NDP. It was about the residents of Dawson Trail,” he said.

Lagasse said he’s committed to remaining an MLA and plans to seek re-election in 2027 as an Independent.

“I have been approached by the parties on both sides. And again, I told them the same thing — that it defeats the purpose of what I’m trying to do for Manitobans, and that’s give them equal representation without party ideology.”

Two men in suits speak during a government legislative session.
Independent MLA and former NDP member Mark Wasyliw, left, and newly Independent MLA Bob Lagassé in question period Thursday. Lagassé voted in favour of the NDP’s budget. (Bryce Hoye/CBC)