Tax delays, cuts and a halt on disconnections: What COVID-19 financial relief has Manitoba introduced?

CBC News | Posted: April 3, 2020 9:05 PM | Last Updated: April 3, 2020

New changes will defer certain provincial fees for 6 months, Premier Brian Pallister said

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Caption: Manitoba Premier Brian Pallister listens to a reporter's question during a COVID-19 news conference on March 27. (John Woods/The Canadian Press)

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The Manitoba government introduced new measures on Friday that are expected to add up to hundreds of millions of dollars in tax relief as people struggle to pay their bills during the COVID-19 pandemic.

"We know that the pain you are experiencing and the stress you're feeling is real," Brian Pallister said at a news conference. "We want to do what we can to lessen it."

The province is introducing a four-month deferral period for individuals and businesses to pay provincial income taxes that extends to Aug. 31, with no interest or penalties.

The Manitoba government said it would be willing to extend these deferrals to Oct. 1 if the federal government agrees.

The premier said the measures are meant to help people who need it most — so if you can afford to pay your taxes right now, you should.

"Those bills you pay help us support you with health care," he said. "This is how we will continue to support the social programs we depend on in our province."

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There will also be a six-month reprieve from any interest or penalties for Manitoba Hydro or gas bills, Manitoba Public Insurance premiums and Workers Compensation Board premiums.

The province has directed Manitoba Public Insurance to relax its usual practices for policy renewals and collections during this time.

It has also instructed Centra Gas and Manitoba Hydro not to disconnect customers right now — although Hydro already announced it would temporarily halt disconnections when it stopped doing non-essential work last month.

The province said it will also make home and business property insurance more affordable by speeding up the removal of $75 million of annual provincial sales tax from residential and business properties effective July 1.

Pallister said this change is expected to save residential property owners about $38 million a year and business property owners about $37 million a year.

The province is also working with municipalities to make sure they don't charge interest on provincial education taxes and school division fees.

The Manitoba government has also instructed Manitoba Liquor & Lotteries not to charge interest on receivables from restaurants, bars and specialty wine stores. It's a move the province says will help small businesses, which have been hit particularly hard by the ripple effects of the pandemic.

New measures not enough: Opposition

Manitoba's Opposition New Democrats said the province isn't doing enough to protect people who have been affected by the pandemic, and called for protected leave for workers taking sick time, grants for small businesses and direct payments for families who have lost income.

"The Pallister Conservatives are failing to do the right thing for families who are hurting from this pandemic," Jamie Moses, NDP Critic for Economic Development and Training, said in a statement.

"This is a missed opportunity to follow the leadership of other provinces and provide direct financial assistance to families, workers and businesses."

Pallister said the province isn't contemplating making any changes for health-care workers needing to use sick days to self-isolate, and chastised labour unions complaining about it.

"This isn't the time for unions to advocate for additional and non-existing benefits," he said.

Pallister said he will consider an extension of the current provincial state of emergency before the end of April.