April 6, 2017
Provincial Government Reduces Temporary Gas Tax
As part of Budget 2017: Realizing Our Potential, the Provincial Government has committed to reduce the temporary gas tax by 75 per cent by December 1, 2017.
Beginning on June 1, 2017, gas tax will be reduced by 8.5 cents per litre; on December 1, 2017, it will be reduced by a further four cents per litre, for a total reduction of 12.5 cents per litre by the end of the calendar year. The remaining four cents of the temporary gas tax will be reviewed as part of the 2017 fall fiscal and economic update.
Consistent with the phase out of the temporary gas tax, on June 1, 2017 the rebate for Labrador Border Zones, which was set at 10 cents per litre last year, will be reduced to 1.5 cents per litre until December 1, at which time it will be discontinued. These areas are Labrador West (Labrador City and Wabush) and Southern Labrador (from the Quebec border to and including the community of Red Bay).
As implemented in 2016, the temporary gas tax on the north coast of Labrador will continue to be reduced to the point that the price per litre does not exceed $1.55 or the temporary gas tax is fully reduced. This will be evaluated over the coming months.
There will be no change to the tax rate on diesel fuel.
"Our government is responsive to the needs of Newfoundlanders and Labradorians. A 75 per cent reduction in the temporary gas tax by the end of the calendar year will provide residents with more disposable income, positively impacting the provincial economy."
Honourable Cathy Bennett
Minister of Finance and President of Treasury Board
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All Budget 2017 documents can be found online at www.gov.nl.ca/budget2017
2017 04 06 2:20 p.m.