For Immediate Release
Thursday, Feb. 4, 2010
Chamber calls for action on PayrolL tax and spending discipline in pre-budget submission
Feb. 4, 2010 – In The Winnipeg Chamber of Commerce’s pre-budget submission to Manitoba Finance Minister Rosann Wowchuk, Chamber President and CEO Dave Angus says it’s crucial the provincial government ensure that Manitoba remains competitive with other jurisdictions on taxes and with an impending provincial deficit on the horizon and the provincial debt increasing - now more than ever it’s imperative the province becomes more disciplined in its spending.
“If we want to attract new business to Manitoba and provide a strong climate that will allow existing businesses to grow and prosper, the government must ensure that we are able to compete,” said Angus.
“Business leaders have told us for years that the payroll tax sticks out like a sore thumb when it comes to doing business in Manitoba. The Chamber also expressed concern that the province’s refusal to take action on a Harmonized Sales Tax (HST) could negatively impact business.”
The Chamber views the payroll tax as a tax that discourages and penalizes Manitoba companies from growing their businesses and strongly recommends the government outline a strategy to eliminate or provide business community with greater accountability and transparency of the payroll tax.
In addition, The Chamber believes that by working with the province and industry associations, we can create a “Made in Manitoba” HST program that provides benefits to consumers, business and government. The Chamber has volunteered to play a vital role in helping inform local businesses on the measures necessary to implement the program.
Angus added that The Chamber is also concerned the provincial government has experienced increases in annual revenues over the past decade only to have expenditures rise at the same rate. The Chamber urged the finance minister to outline a multi-year plan to deal with the province’s rising debt and operating deficit.
If we really want to compete with other provinces to attract and retain business a combination of a competitive tax climate and a balanced approach to spending is critical,” said Angus.” It’s important for the province to send a message in the upcoming budget that Manitoba is committed to creating a climate that is conducive to greater economic prosperity and generates greater opportunities for the future.”
Dave Angus will be available to comment following the Mark Carney Luncheon at 1:30 p.m.
Contact: Chuck Davidson - Vice-president Policy and Communications
Tel: (204) 942-3011 ext. 210 Cell. (204) 782-1679