Business federation calls on province to expand PST exemption

The Manitoba government is cutting taxes at the checkout, but not everyone is celebrating. The Canadian Federation of Independent Business (CFIB) is calling on the province to expand its new Provincial Sales Tax exemption on grocery items to include small retailers and restaurants, saying it is not helping everyone equally.

In the 2026 provincial budget, it was announced that they would be removing the 7 per cent provincial sales tax on all food and beverages sold in grocery stores, including prepared items like rotisserie chickens, prepared salads, and snacks.

Tyler Slobogian with CFIB believes this announcement creates an unfair two-tier system that disadvantages some local businesses.

“We support affordability, but it has to be fair and consistent. So right now, the PST grocery exemption really skips many of those small community-based businesses. It’s going to distort consumer behaviour as a result. Many residents will be going to the stores that have this PST exemption, and it will shift people away from these local businesses that offer the same product,” said Slobogian.

Slobogian says the province is facing an entrepreneurial drought right now.

“We’ve seen business exits outpace entries for the past six quarters here in Manitoba. We should be doing everything we can as a province to lift these small businesses up at a time of obvious hardship for them. Rather than excluding them from government polices. At the end of the day, the same food should mean the same tax cuts regardless of where Manitobans buy,” said Slobogian.

Tony Siwicki is the owner of Silver Heights Restaurant and Lounge. The local establishment has been in business since 1957 and is known for being Winnipeg’s longest-running family restaurant.

“PST allows for people to go somewhere else to collect any kind of discount, and when you’re already in a competitive nature right now against grocery stores and entertainment dollars, when you’re given some disadvantage, it just hurts people from coming. We are removed from the choice,” Siwicki explained.

Siwicki is hoping that with a little help from the province, it will ultimately help their bottom line.

“Create more jobs, open more hours, buy more product. It’s just a win-win for everybody; it makes no sense why they would exclude us,” said Siwicki.

CityNews reached out to Finance Minister Adrien Sala’s office, and a response reads, “We are continuing to have conversations with stakeholders who have requested changes and will keep listening as we work to make life more affordable for families across the province.”

However, Siwicki says, “When we’re all fighting for the same dollar, and we’re a small business, why give it to the bigger people?”