News Releases
Government Home Search Sitemap Contact Us  

February 26, 1997
(Finance)

 

Government reduces taxes on snowmobile purchases effective midnight tonight

Paul Dicks, Minister of Finance, announced today that government will reduce the Retail Sales Tax rate on the purchase of new snowmobiles from 12 per cent to eight per cent. The rate reduction will become effective midnight tonight.

"In making the decision to reduce the sales tax rate on purchases of new snowmobiles, the government believes it will encourage consumers to continue their normal buying habits, rather than delay purchases until harmonization becomes effective on April 1," said the minister. "Under harmonization, the sales tax on snowmobiles will be reduced from almost 20 per cent to 15 per cent. This reduction is a major factor in people's decisions to postpone purchases until after harmonization takes effect."

To illustrate the impact of this RST reduction, the sales tax on the purchase of an $8,000 snowmobile will be reduced from $1,027 to $685, a saving to the consumer of almost $350.

"Government is delighted to offer this tax decrease on new snowmobile purchases. We view it as a positive measure which will have a stimulative effect on an industry which has suffered due to poor seasonal weather conditions over the past couple of years," said Mr. Dicks.

The measure complements government's decision of December 13, 1996, when it reduced the sales tax rate from 12 per cent to eight per cent on sales of cars and trucks by registered dealers in the province. Sales of new vehicles in January 1997 increased over 30 per cent from the same period the year before.

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

1997 02 26 2:10 p.m.

SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement