On January 1, 2019, several tax policy changes that will support citizens and businesses took effect.
In Budget 2018, the Provincial Government announced that the tax on automobile insurance would be reduced by a minimum of five per cent over four years, starting with a two per cent reduction on January 1, 2019. This change, now in effect, will be followed by reductions of one per cent on January 1 in 2020, 2021 and 2022.
Also in 2018 government announced its Made-In-Newfoundland and Labrador approach to carbon pricing. Starting on January 1, as the Provincial Government had previously committed, the four cent temporary gas tax has been eliminated, as has the additional five cent gas tax on diesel. The federally-mandated carbon tax has been added at 4.42 cents on gasoline and 5.37 cents on diesel. Under the provincial carbon pricing program, consumers will not be taxed on home heating fuels as they would have been under the Federal Government’s plan.
The Provincial Government’s carbon pricing program maintains competitiveness for taxation and trade, minimizes the impact on consumers and vulnerable groups and recognizes the considerable cost the province is already paying to decarbonize electricity while delivering meaningful reductions in greenhouse gas emissions.
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“While taxation is an important part of provincial revenue generation, as a government we must continue to adapt our approach to taxation to ensure that it is fair and equitable while supporting vital service delivery. Tax changes announced in 2018 will have far-reaching positive impacts for citizens and businesses in Newfoundland and Labrador, and we remain committed to continuing our balanced approach to fiscal management in 2019.”
Honourable Tom Osborne
Minister of Finance and President of Treasury Board
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Provincial Government Reduces Tax on Automobile Insurance, Initiates Other Tax Changes
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Marc Budgell
Finance
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