Adding 1% to sales tax would pay for roads, bridges and sidewalks
Winnipeg (14 Nov. 2008) - The Association of Manitoba Municipalities (AMM) is proposing a new 1% sales tax to pay for infrastructure projects across the province.
If accepted by the NDP government of Premier Gary Doer, the levy would be added to the existing 5% federal GST and 7% PST already collected on goods and services in Manitoba.
Winnipeg Mayor Sam Katz says the money would only be used to fund bricks and mortar projects on a per-capita basis - projects such as roads, bridges and sidewalks.
A municipal sales tax could raise a lot of money province-wide, including an estimated $160 million a year in Winnipeg alone.
A public opinion poll commissioned by the association in September found nearly 70% of those surveyed agreed that infrastructure renewal projects should be a high priority for local governments - with 54% supporting the idea of a tax.
AMM president Ron Bell says he expects a motion pushing the province to adopt the new tax will pass the convention later this month. "Even the premiers of Canada are saying now is the time to invest in infrastructure, to drive the economy. And so, I think that this will pass," he added.
The premier has yet to comment on the proposal. The Canadian Federation of Independent Business (CFIB) says the idea should be rejected.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring that our common wealth is used for the common good. NUPGE
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