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Budget raises taxes

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The Manitoba government released a balanced budget yesterday but hiked taxes, fees and drug premiums to do so. The budget, which also calls for the elimination of 400 civil servant jobs through attrition, features $47 million in new taxes this year. That includes a new sin tax of two cents per cigarette (an extra 50 cents extra for a standard pack), effective as of today. The province has also asked the Manitoba Liquor Control Commission to boost the cost of liquor enough to raise an extra $10 million. The seven per cent retail sales tax expands to include professional services, such as legal and accounting services, effective July 1. Vehicle registration fees are on the way up, with a $23 increase to also begin on July 1. In addition, the province's drug plan will be reorganized, with premiums increasing by five per cent or more depending on income. Finance Minister Greg Selinger told the Legislature that tough budgetary times call for tough measures. "This past year will be remembered as one of great challenges," he said of a year that included drought, forest fires and the Mad Cow Disease crisis. For highlights of the new budget, see page 3.

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