New Energy Rebate Closer to Reality

The new Energy Rebate, that will enable the eight per cent provincial portion of HST on home energy purchases to be refunded to residential bill payers, is a step closer to reality with the recent introduction of an amendment to the Revenue Administration Act in the House of Assembly. The Energy Rebate is a key tax measure that was announced as part of Budget 2011 Standing Strong: For Prosperity. For Our Future. For Newfoundland and Labrador. It covers electricity, furnace oil, stove oil, propane, wood pellets and other sources of home energy.

The savings under the Energy Rebate will be significant for all residents of Newfoundland and Labrador. For example, a household with combined annual electricity and home heat purchases totalling $4,000 will save $320 per year on their energy costs. The Provincial Government is also continuing the Home Heating Rebate that is targeted towards low income earners. Both initiatives combined total an estimated $55 million in savings for residents of the province for the coming year.

“The elimination of our portion of HST on residential energy purchases ensures that all residents of Newfoundland and Labrador benefit from the development of our natural resources,” said the Honourable Tom Marshall, Minister of Finance and President of Treasury Board. “This new Energy Rebate will put hard earned money back into the hands of Newfoundlanders and Labradorians to use as they see fit. When combined with the very successful Home Heating Rebate, it will provide relief to many households in the province.”

The new Energy Rebate is expected to be in place by October 1, 2011, in time for the heating season. This timeframe gives the Provincial Government an opportunity to work with energy suppliers to ensure an efficient implementation of the rebate.

The Energy Rebate builds on previous tax measures including the elimination of the Retail Sales Tax on insurance, enhancements to seniors’ benefits, the low income tax reduction, personal income tax reductions and indexation of tax brackets and most non-refundable tax credits. Since 2007, these changes have resulted in annual tax savings to the people of the province of over $500 million.

“Our government continues to introduce new initiatives which lessen the tax burden on residents,” said Minister Marshall. “We have moved from being a province with one of the highest personal income tax rates in the country to having the lowest rates in Atlantic Canada. This government has wisely used the resources available to us to deal with the serious fiscal problems that we faced when we came into power. Through solid planning and a commitment to staying the course we have been able to provide significant, tangible benefits to the people of the province leaving them with more resources with which to run their households and to cope with the costs of everyday necessities.”

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Media contact:
Luke Joyce
Director of Communications
Department of Finance
709-729-6830, 725-4165
lukejoyce@gov.nl.ca

2011 05 20                                                                              9:15 a.m.