On March 16, 2021, Finance and Treasury Board Minister, Ernie Steeves, presented the 2021 New Brunswick budget. Acknowledging the significant impact of the COVID-19 pandemic on the provincial economy as New Brunswick enters what the government hopes will be the early stages of a recovery, this year’s budget announcement projects a deficit of $244.8 million, which lies in stark contrast to the $92.4 million surplus forecast last year.
The budget includes spending commitments of $64 million to address ongoing challenges posed by the pandemic, as well as several initiatives to improve healthcare and education, drive economic growth, and protect the environment.
No new taxes or significant tax increases were announced as part of this year’s budget. However, the government confirmed that its provincial carbon tax will be increased, as required by the federal backstop.
Carbon Tax
Effective April 1, 2021, the provincial tax on carbon-emitting products will be increased from $30 to $40 per tonne of carbon dioxide equivalent emissions. This carbon tax increase will equal 2.21 cents per litre of gasoline and 2.68 cents per litre of diesel.
More Information
Further information on New Brunswick’s 2021 budget may be found on the province’s website at:
https://www2.gnb.ca/content/gnb/en/departments/finance/budget/2021-2022/budget.html
If you have any questions about how tax changes proposed in recent Canadian budgets might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.