The Honourable Tom Osborne, Minister of Finance and President of the Treasury Board, presented the Newfoundland and Labrador budget on April 16, 2019. This year’s “Working Towards a Brighter Future” budget focuses on economic growth and development whilst increasing access to government services.
While no new taxes, tax rate or fee increases were introduced, the Minister announced the elimination of the provincial tax on automobile insurance, to be implemented in early July 2019, but to have retrospective effect from April 16, 2019. Hence, a rebate will be available for any provincial tax paid on automobile insurance renewals from the April 16, 2019 elimination effective date to the date of its elimination in July 2019.
An exemption of payments from child support, Canada Pension Plan Disabled Contributor’s Benefit, and Canada Pension Plan Surviving Child Benefit to determine eligibility for Income Support was announced alongside a reduction of passenger licensing fees for seniors and veterans.
From the personal income tax perceptive, the Minister affirms commitment to remove the temporary deficit reduction levy by December 31, 2019, with potential savings of up to $1,800 per individual.
Further information on Newfoundland and Labrador’s 2019 budget may be found on the province's web site at: Newfoundland and Labrador Budget 2019
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.