Today, Premier Brian Pallister is announcing a drop in taxes in response to the addition of a new carbon tax.

The province of Manitoba says they expect the average household in Manitoba to save around $200 a year in 2022 after the addition of the tax changes.

Proposed Provincial Sales Tax cuts will reduce rates by 1 per cent. The new six per cent tax rate will begin on July 1 of this year along with a new Green Levy.

"Our plan is better for the environment, better for the economy, and better for children and grandchildren."

A flat-rate of $25 per ton will be charged on carbon emissions as part of the Green Levy.

“Unlike the federal government’s rising carbon tax, our flat made-in-Manitoba Green Levy will return all of the money and more to Manitobans with the second-lowest PST in Canada,” Pallister says.

The government of Manitoba is expecting to receive $285 million in funds from the Green Levy in 2022. They also expect the PST reduction in the same year to save Manitobans $325 million. 

Pallister has been in conversation with the federal government regarding carbon tax since it was first proposed. He has spoken against the government of Canada's proposed carbon tax many times but will be implementing the Green Levy on Canada Day.

"Our plan is better for the environment, better for the economy, and better for children and grandchildren," Pallister says.

Next week Pallister's government is set to release the province's new budget.