Manitoba food tax cut could be broadened, budget passes key vote in legislature

Manitoba Premier Wab Kinew eats rotisserie chicken at a news conference inside a grocery store in Winnipeg, on Wednesday, March 25, 2026. Kinew was promoting his government's plan to remove the provincial sales tax from all food in grocery stores. THE CANADIAN PRESS/Steve Lambert

WINNIPEG — Manitoba Premier Wab Kinew is hinting the provincial government may broaden a tax cut on food items but not as much as some people are demanding.

Most basic food items, including milk, meat and produce, are already tax-exempt, and the government’s recent budget plans to broaden the exemption to all food sold in grocery stores as of July 1.

That would mean snacks, ready-made meals and soft drinks would be tax-exempt as well, as long as they are sold in grocery stores.

To qualify as a grocery store, a vendor must meet certain conditions, including a minimum size.

Owners of restaurants and convenience stores have said they should be included as well, because they sell the same products and would be at a disadvantage.

Kinew told CBC he’s looking at extending the tax break to smaller stores but didn’t provide details.

“I think what we’re looking at is the mom-and-pop stores, and honestly, this is folks in the tax branch who come up with these definitions,” Kinew told CBC on Thursday.

“This is about rotisserie chickens. This is about prepared salads. I want people to eat healthy, right, and I’m not sure which of those options are at 7-Eleven. I can tell you every grocery store, many mom-and-pop stores, will have those healthier options,” Kinew added.

The Opposition Progressive Conservatives said the tax should be a level playing field but the NDP government’s current plan will favour big-box grocers.

“There’s no reason why you should discriminate,” Tory Leader Obby Khan said.

The tax break also wouldn’t save Manitobans much money, Khan added.

The Tories recently produced a receipt from a shopper and said the man had spent $109 on groceries but, because most of the items are already tax-exempt, he would save only two cents under the planned tax cut.

Kinew is also considering another cut to the provincial fuel tax.

He told the legislature this week that he may further reduce the tax, in addition to a reduction in 2025, to help people with rising fuel prices.

He told CBC he would take about a month to decide and see whether fuel prices drop back to near normal levels.

The government’s budget passed a vote in the legislature Thursday evening and was supported by Bob Lagassé, who quit the Progressive Conservative caucus last month and now sits as an Independent.

Lagassé said he voted for the budget because it includes money for a new school in his Dawson Trail constituency, east of Winnipeg.

“It wasn’t about the PCs. It wasn’t about the NDP. It was about the residents of Dawson Trail,” he said.

Lagassé said he’s committed to remaining an Independent legislature member and plans to seek re-election in 2027 as an Independent.

“I have been approached by the parties on both sides. And again, I told them the same thing — that it defeats the purpose of what I’m trying to do for Manitobans and that’s give them equal representation without party ideology.”

Steve Lambert, The Canadian Press