WINNIPEG, Manitoba (Reuters) - The Western Canadian province of Manitoba said on Wednesday it would cut capital taxes for businesses hurt by the strong Canadian dollar, saving manufacturers and processors about C$25 million a year.
The cut was included in the 2008-09 budget for the province, which is led by the left-leaning New Democratic Party.
“In the face of more uncertain economic times ahead, our government’s strategy will be to focus on maintaining the gains we have made, holding steady to the same course,” Finance Minister Greg Selinger said in his budget speech.
The corporation capital tax will be phased out for all businesses by 2010, Selinger said.
He forecast a surplus of C$96 million in the budget, which increased spending by 3.3 percent to C$12.23 billion.
Tax cuts for individuals totaled C$182 million, along with a total of C$120 million in cuts for businesses, he said.
The province introduced a new tax on companies that burn coal for energy of C$10 a metric ton of carbon dioxide emissions, starting in July 2011.
The revenue from the carbon tax will go toward helping industries shift to less environmentally harmful forms of energy, Selinger said.
Reporting by Roberta Rampton; editing by Rob Wilson