Tax Alert | Newfoundland and Labrador Budget 2024

On March 21, 2024, the Honourable Siobhan Coady, Deputy Premier, Minister of Finance, and President of the Treasury Board, presented the 2024 Newfoundland and Labrador budget. Projecting a deficit of approximately $152 million, the budget focuses on affordability issues and provides for significant investments designed to improve healthcare and education, reduce poverty, and create more housing. 

No new provincial taxes, fees, or tax increases are included in the budget. However, the province did announce one income tax measure to help with the growth and development of small businesses. 

Corporate Income Tax Measure 

This year’s budget contains a proposal to reduce the small business corporate tax rate on the first $500,000 of active business income from 3% to 2.5%, effective January 1, 2024.  

Affordability Measures 

The province also noted that several affordability measures announced in previous budgets will continue, including:

• The 8.05 cent per litre reduction in the provincial tax on gas and diesel;
• The 50% reduction in the cost of registering passenger vehicles, trucks, and taxis;
• The home heating supplement for furnace and stove oil; and
• The elimination of the retail sales tax on home insurance.

More Information

Further information on Newfoundland and Labrador’s 2024 budget may be found on the province’s website here.  

If you have any questions about how these proposed changes might impact your organization, please do not hesitate to contact the Ryan TaxDirect^® line at taxdirect@ryan.com or 1.800.667.1600.