Payroll tax changes, contingency supports, and other affordability measures will help businesses navigate economic challenges
Winnipeg, March 20, 2025 — In response to today’s provincial budget, the Canadian Federation of Independent Business (CFIB) welcomes Manitoba’s commitment to business growth by reducing payroll taxes for some small firms, and introducing a new security rebate specifically for businesses, to help mitigate thefts and vandalism. However, more may be needed to help increase business confidence during these turbulent times.
According to CFIB’s latest Business Barometer®, in March, small business optimism plummeted to an all-time low. In Manitoba, the index dropped 24.1 points to 30.2 reaching a lower mark than during the 2020 pandemic, the 2008 financial crisis, or in the wake of 9/11.
“Small business owners in Manitoba are feeling extremely pessimistic about their future. Ongoing trade uncertainty, rising costs and lack of demand make it nearly impossible to plan for the months ahead,” said Tyler Slobogian, CFIB’s Senior Policy Analyst for the Prairies & the North. “No one knows when the tariff war will end, and businesses are deeply concerned that the worst is yet to come.”
“We are pleased to see the Manitoba government recognize the challenges that small businesses are facing, especially in light of ongoing trade disputes and significant economic uncertainty,” added Slobogian. “But further tax cuts may be necessary to promote growth and expansion and to help small businesses remain competitive should we find ourselves in a prolonged trade war.”
CFIB will continue to work with the Manitoba government to implement additional measures to support and strengthen the small business sector, including:
- Eliminating the RST on all insurance products to address rising insurance costs;
- Eliminating the RST on capital expenditures (i.e. machinery & equipment) to support business investment;
- Increasing the small business tax rate threshold to $600,000.
For media enquiries or interviews, please contact:
Brianna Solberg
CFIB Director, Prairies and Northern Canada
(306)-713-8071
Brianna.Solberg@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members (4,500 in Manitoba) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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