A provincial sales tax on materials for new farm production buildings remains a burr under the saddle of Manitoba producers.
Keystone Agricultural Producers president Don Dewar said the tax puts Manitoba farmers at a disadvantage when compared to their counterparts in most other provinces.
KAP has lobbied for years to have the sales tax removed from materials used in new agricultural buildings, such as hog barns.
The general farm group also wants the provincial sales tax removed on soaps and disinfectants used on farms.
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In a letter written to Manitoba’s finance minister this fall, KAP again asks the province to address the issue.
“All we can do now is keep the heat on,” Dewar said.
KAP surveyed other Canadian provinces, except Prince Edward Island, and found evidence to support its claim that farmers in Manitoba are at a tax disadvantage.
Producers in all provinces except Saskatchewan and Manitoba receive a rebate or are exempt from a provincial sales tax on soaps and disinfectants for agricultural use.
As for provincial sales tax on materials for new agricultural buildings, producers are exempt or are paid a rebate in all provinces except British Columbia and Manitoba.
In Manitoba, the provincial sales tax on materials for new buildings affects livestock producers and the special crops industry, which requires specialized storage.
Manitoba’s previous government had promised the changes sought by KAP. However, the Tory government was defeated a year ago and replaced by the New Democrats, led by premier Gary Doer.
“We changed governments,” said Dewar, ” so now we’re back to square one.”
