March 26, 1998
(Finance)

Government eases the tax burden for businesses

Finance Minister Paul Dicks announced in his 1998 Budget Speech today a change in the Health and Post Secondary Education Tax (HAPSET), commonly known as the payroll tax, which will see $1 million put back in the hands of businesses in Newfoundland and Labrador.

The exemption for annual business payroll up to $100,000 is being increased to $120,000 effective January 1, 1998, meaning that approximately 225 small businesses in this province will no longer be required to pay the payroll tax. The minister said the change comes as a result of expressions by the small business sector generally, and through representation made during this year's pre-budget consultation process.

"The increased exemption will benefit all businesses in the province currently subject to the payroll tax," said Mr. Dicks, "but will be most helpful to small businesses. Government is pleased to be able to make this change. It is in keeping with our philosophy not to increase taxes, but rather to reduce them as is financially prudent to do so."

Contact: Karen McCarthy, Communications, (709) 729-0110.

1998 03 26                    3:32 p.m.