The Retail Sales Tax Amendment Act proposes a smart ID system to simplify exemptions, especially for rural and remote producers
A new bill introduced in Manitoba is aiming to simplify the tax process for farmers and agricultural retailers by cutting down unnecessary paperwork and streamlining procedures. The bill, known as The Retail Sales Tax Amendment Act (Bill 228), was presented by Morden-Winkler MLA Carrie Hiebert with the intention of easing administrative tasks for those in the agriculture sector.
Currently, farmers in Manitoba must sign a declaration form—either physically or digitally—every time they make a purchase that qualifies for a tax exemption. This requirement can be especially difficult for those in remote areas where access to services is limited. The process has been widely considered outdated and time-consuming by both producers and retailers.
To address these concerns, Bill 228 proposes the introduction of a new farm identification number system. This number would function similarly to a GST number and could be presented at the time of purchase, removing the need to repeatedly sign forms. Under the proposed change, a farmer would only need to sign a declaration once every two years instead of for each transaction.
Supporters of the bill argue that it’s a much-needed move to reduce red tape and improve efficiency in the agriculture sector. It’s expected to benefit not only farmers but also agricultural retailers who manage these transactions. By simplifying the tax exemption process, the bill aims to save time and reduce stress during critical farming periods, such as harvest season.
This legislation comes at a time when the agriculture sector is facing growing uncertainty due to international trade pressures. The goal of Bill 228 is to provide practical support to farmers and ensure the tax system works better for those who help feed the province and beyond.
“Farmers and retailers asked for this change, and we listened,” said Hiebert. “During harvest, farmers are working long hours and shouldn’t be worried about signing paperwork for every purchase. This bill brings common sense to our tax system.”
If passed, Bill 228 will mark a significant step forward in reducing administrative burdens and modernizing the way tax exemptions are handled in Manitoba’s agricultural industry.