From 1st of July, 2019 Manitoba government reduced provincial sales tax (retail sales tax or RST) from 8% to 7%. PST in Manitoba was 8 per cent exactly for six years since July, 2013. The Progressive Conservative party campaigned in the last provincial election on a promise to reduce retail sales tax and finally it was done just before new election.
Manitoba now has the third lowest sales tax rate among all of the provinces.
Huge saving for families
According to government this retail sales tax reduction will save a family of four approximately $239 in 2019 and about $500 in 2020. For a single person it will be approximately $86 savings in 2019 and about $174 savings in 2020. Manitoba families and individuals will save almost $1,000,000,000 ($1 billion) between July, 2019 and July, 2024.
When buying furniture worth $2,500 this will save families $25 or it will save , $300 when buying a car for $30,000.