Tories pledge to cut PST on salon services

Hey there, time traveller!
This article was published 14/07/2019 (1948 days ago), so information in it may no longer be current.

A pledge by the Manitoba Tories to remove the PST on haircuts, manicures and facials over $50 has critics questioning the government’s priorities.

Last week, the Progressive Conservatives vowed to eliminate the provincial sales tax on home and renters’ insurance — if re-elected Sept. 10.

Rochelle Squires, the MLA for Riel and status of women minister, took the proposed tax relief a step further Monday, during a stop at Atomic Hair Studio on Academy Road: announcing the party would scrap the PST on salon services, including haircuts costing more than $50. (Haircuts costing less than $50 are already PST exempt.)

“We know, oftentimes, a price a woman would pay when she walks into a salon for a cut and colour would be a much higher price than what a man would pay for a similar service,” Squires said. “And we know that women are more frequent users of this service and they were paying a disproportionate amount of that tax.”

At Atomic, for example, men’s haircuts cost about $35-$45, while women’s cuts are slightly pricier at $45-$55. Owner Daveen Singh said he purposely tries to keep the price under $49.99 to avoid charging sales tax.

“People perceive an increase in price as an increase in total service price, even if you can explain to them that it’s a tax,” he said.

“For us as an industry, our margins have been slowly shrinking over the years (as) products get more expensive. (A PST cut) will give us a little bit of flexibility to stay competitive with all of the utilities and rents and everything like that going up.”

The Progressive Conservatives estimate the campaign pledge would cost the provincial treasury at least $7 million per year. Manitobans who get their hair cut, washed and styled six times per year at $110 per visit would save $46.20 annually, according to the party.

Nahanni Fontaine, NDP MLA for St. John’s, agreed charging PST on salon services often discriminates against women, but she wondered why the PCs didn’t eliminate such taxes during their first three years in government.

“It really does beg the question where the priorities are for the PC government and the PC party for Manitoba… if this is the best that you can come up with at the very beginning of our election process. This is it?” Fontaine asked.

Liberal Leader Dougald Lamont also panned the announcement.

“The Manitobans I talk to are worried about the Pallister government closing ERs, meth-driven crime and climate change, while the PCs are offering a tax cut on toenail trimming,” he said in a prepared statement.

During the 2016 election campaign, the Manitoba Liberals promised to eliminate PST on haircuts and salon services. This year, the party said it would commission a tax review, as recommended by the Winnipeg and Manitoba Chambers of Commerce.

In an effort to boost provincial revenue in 2012, the then-NDP government began taxing a series of insurance and personal care services, including spa treatments, tattoos and piercings.

Squires noted more tax-related announcements from the PCs are forthcoming, before Manitobans head to the polls in less than two months.

While the PCs may pledge to roll back more NDP policies, whether they are announced with more fanfare is to be determined.

The party made its first tax-cut proposal at a Bridgwater Trails show home, brimming with candidates, volunteers and Premier Brian Pallister; Squires made Monday’s announcement alone in a hair salon that was closed for the day.

Squires said she’d met with Pallister earlier Monday, but didn’t signal why he wasn’t in attendance.

“I’m thrilled to be part of a Progressive Conservative team where we work collaboratively, shoulder-to-shoulder as one team,” she said.

jessica.botelho@freepress.mb.ca

Twitter: @_jessbu