Winnipeg, March 13th, 2025 – On behalf of over 4,500 small businesses in Manitoba, the Canadian Federation of Independent Business (CFIB) has urged the province to provide stability and predictability for small firms in Budget 2025-26. This means freezing taxes, avoiding the introduction of new costs, and implementing policies that will encourage investment.
Recent CFIB survey data shows that small business owners continue to identify reducing the overall tax burden as their top priority. With 83% citing the rising cost of doing business as their biggest challenge, there is an urgent need for concrete action to foster economic growth.
“Manitoba small business owners have shown resilience in the face of ongoing economic challenges, but they need additional support,” said Tyler Slobogian, Senior Policy Analyst for the Prairies & the North. “Given the impacts of U.S. tariffs and the significant uncertainty small businesses are currently facing, this year’s budget provides an opportunity for the Manitoba government to help businesses weather the storm by avoiding the introduction of any new taxes or cost increases and working to reduce costs for small businesses wherever possible.”
CFIB has recently met with Manitoba’s finance minister to share recommendations as to how the provincial government can support small businesses at this time. To help address the rising cost of doing business and promote business growth and expansion, the Manitoba government should:
- Eliminate the Retail Sales Tax (RST) on all insurance products for small businesses (i.e. liability insurance, legal expense insurance, etc.);
- Exempt all capital expenditures, including machinery and equipment, from RST to encourage growth and modernization;
- Increase and expand the $300 Security Rebate Program to provide small businesses with access to funding to support costs due to crime related damages/repairs, and address underlying social issues, including affordable housing, mental health, and addictions.
- Increase the Health and Post Secondary Education Tax Levy (HE Levy) exemption threshold to $2.5 million and decrease tax rates – particularly given upward pressure on wages;
- Raise the small business corporate income tax rate threshold from $500,000 to $600,000; and
- Reinstate the commission for businesses on RST remittances.
Manitoba has been facing stagnant productivity for years, with declining investment in machinery and equipment and capital inputs. Meanwhile, Manitoba has the 2nd highest marginal tax rate on investment in Canada. In response to a recent CFIB survey, almost half of Manitoba small businesses said 'the inability to write off RST' is a deterrent to capital investment.
“With U.S. tariffs, now more than ever we must address inefficiencies & promote productivity. CFIB has called on the province to exempt all capital purchases from the RST. Data from a recent CFIB report indicates that removing the RST on capital inputs could increase investment by around 18% (or $332 million) in Manitoba. Ultimately this will help support our local businesses and grow our provincial economy,” concluded Slobogian.
Click here to view CFIB’s pre-budget submission.
For media enquiries or interviews, please contact:
Brianna Solberg, CFIB
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 100,000 members across every industry and region, including over 4,500 in Manitoba. 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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