The Government of Manitoba introduced its budget implementation legislation that, if passed, will implement a PST exemption for prepared foods sold in grocery and convenience stores, while continuing to apply the tax to the same products sold by restaurants.
This remains a fundamentally unfair approach that continues to exclude restaurants.
Since this measure was first announced in the March Budget, Restaurants Canada has been actively and consistently pushing back. We have been clear: we cannot accept a policy that puts restaurants at a structural disadvantage to their competitors.
What we’ve done
We have taken a coordinated approach to advocate for change:
- Direct government engagement: We met with Finance Minister Adrien Sala to make a clear and direct case for including restaurants and have continued discussions with his senior officials. Kelly Higginson has written to both Minister Sala and Premier Wab Kinew, calling on the government to amend the legislation and include restaurants, and we have requested a meeting with the Premier.
- Broader cabinet outreach: We have also engaged the ministers responsible for tourism and labour to ensure the broader economic and workforce impacts are understood.
- Broader political outreach: We have engaged Opposition Leader Obby Khan and all MLAs to raise our concerns and increase pressure on the government.
- Public advocacy: We have been active in the media, including an op-ed by Kelly Higginson in the Winnipeg Free Press, reinforcing our message publicly, and we intend to remain active in the media.
Our Message
Our message has been consistent and clear: the government must amend its approach to deliver fairness.
- As currently designed, this measure does not operate as a neutral affordability policy.
- This is not a tax cut on food—it is a tax shift between competitors that creates winners and losers.
- It provides relief only if consumers change where they purchase their food, even when the product is identical.
- Differential tax treatment changes consumer behaviour and will shift demand away from restaurants
- Restaurants are significantly more labour-intensive than grocery retail, meaning this policy puts jobs at risk
- The approach undermines affordability, particularly for lower-income Manitobans who spend a greater share of their income on restaurant meals
What you can do
Your voice is critical.
We encourage you to contact your local MLA, Premier Kinew, and Finance Minister Adrien Sala to share how this policy will impact your business, your employees, and your community.