Manitoba to announce tax extension for wildfire-affected businesses

Winnipeg Free Press

11-06-2025

Voluntary tax deferrals for businesses impacted by wildfires will be announced by the province Wednesday, the Free Press has learned.
A source confirmed late Tuesday that the government will offer optional deferrals of the retail sales tax and payroll tax (the health and post-secondary education tax levy) to help businesses affected by the unprecedented emergency that has forced 21,000 Manitobans to flee 27 communities.
A similar measure was announced by the province in March in response to U.S. tariffs, with such deferrals available from February through July.
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Manitoba Finance Minister Adrien Sala.
Details of the program related to wildfires will be made public Wednesday.
Meanwhile, Manitoba businesses dealing with the fallout from an early, raging fire season have been waiting for the province to say if and how it will provide any government support.
'We have been hearing a lot of concern about the level of uncertainty — especially from tourism operators who are fearful they will miss out on the entire 2025 season,' said Canadian Federation of Independent Business spokesperson Brianna Solberg.
She wrote to Finance Minister Adrien Sala on June 2 asking if the province would consider any specific cost relief or recovery measures for impacted small businesses.
Flexibility on provincial tax and fee payments and remittances for affected businesses — such as retail and payroll tax deferrals — was one of the requests made in the letter.
It also asked for emergency financial assistance or recovery grants and sought assurances that wildfire-impacted small businesses are eligible for Disaster Financial Assistance. It also requested co-ordination with federal counterparts to ensure Manitoba businesses are eligible for any national wildfire relief programs.
Solberg said Tuesday she had yet to receive a response.
Sala wouldn't talk about specific supports for businesses when brought up by the Free Press.
'Right now, the focus continues to be on keeping people safe and supporting individuals who've been impacted by the wildfires,' the minister said Tuesday.
Sala noted there is $50 million in this year's budget for emergency expenditures and 'a number of relevant departments' have funding available. A separate budget for contingencies is $38.6 million.
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Transportation and Infrastructure Minister Lisa Naylor.
'This wildfire season has been worse than many in recent memory, so we are seeing steady use of our existing budget lines to help respond to these challenges,' the minister said.
He said the government would have a better idea about the cost of this wildfire season in September.
'It's still early days. I can say that I think we budgeted accordingly and have the resources needed to make sure that we can do what we need to do to take care of Manitobans during this challenging time.'
Despite the impact of U.S. tariffs and provincial wildfires hurting the bottom line, Sala said the province still aims to balance the books in his first term.
'We're still committed to balancing the budget,' Sala said.
The leader of the Progressive Conservatives said the response from the provincial government was lacking.
'They can be committed all they want, but we all are clearly seeing that the NDP are saying whatever they have to say and not doing the hard work behind the scenes,' Obby Khan said Tuesday.
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He pointed to Lisa Naylor, the minister responsible for the Emergency Management Organization, who said Manitobans hosting conventions or planning family trips should postpone them until later this summer to ensure there are enough hotel spaces for evacuees.
'Dozens of businesses have called me today, and text-messaged me that this government seems to make announcements and policies without doing their proper due diligence and consultation,' Khan said.
'It seems like they haven't spoken to many businesses, many industry leaders and it's evident with the minister coming out and asking people to reconsider or forego their travel to Manitoba when many of these operators really rely on this tourism and summer revenue and some of them are nowhere near the fires.'
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Progressive Conservative leader Obby Khan.
The president and CEO of the Manitoba Chambers of Commerce said Naylor's plea took some by surprise.
'I think that the government is trying to do the best they can in the current situation,' Chuck Davidson said Tuesday. 'Obviously with the wildfire situation and the number of people that have been evacuated… it's trying to do everything possible to make sure that there's accommodation.'
At the same time, tourism operators can't afford to lose guests, Davidson said.
'Some of these businesses are going to need those additional revenues to make sure that they can continue to operate moving forward.'
Naylor said Tuesday that the province is housing evacuees in 68 hotels and motels in 14 communities across the province.
'We're looking everywhere for options if they're needed,' Naylor said. 'We're really at the beginning of the wildfire season. We don't know how this is going to go, and we don't know what's going to happen next… So we are trying to keep hotel rooms and motel rooms available as much as possible for evacuees.'
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Carol SandersLegislature reporter
Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol.
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