Manitoba’s new provincial tax exemption on groceries, effective July 1, extends sales tax relief to snacks, soft drinks, and prepared foods-but only when sold by grocery stores. Restaurant owners warn the policy creates an uneven playing field, as their identical takeout offerings remain taxed.
"We can’t afford to lose any additional revenue," said Shaun Jeffrey, executive director of the Manitoba Restaurant and Foodservices Association. "This is going to potentially take consumers away from the restaurant industry and push them into a grocery store."
Premier Wab Kinew defended the move, stating it targets low-income households who rely on grocery stores, not restaurants. "A lot of low-income Manitobans can’t go out to eat," Kinew said during a grocery store event, where he consumed a rotisserie chicken-the very item now tax-exempt.
Doctors Manitoba raised concerns that newly exempted items include unhealthy snacks, not just nutritious staples. Kinew responded that individuals should make their own choices, but the government is focused on lowering daily costs.
The policy is projected to cost the province $32 million annually-roughly $22 per resident. Critics, including Opposition MP Konrad Narth, highlighted cases where consumers save mere pennies, questioning the policy’s impact.
Finance Minister Adrien Sala tied the exemption to broader affordability measures, including milk price freezes and bans on personalized food pricing.