On March 29, 2010, the Honourable Tom Marshall, Minister of Finance and President of Treasury Board, presented Newfoundland and Labrador’s 2010 budget. This year’s budget forecasts a rise in investment in the province over the next two years, with the objective being to provide a stimulus and support for the province’s projected economic growth. The budget provides for a revised deficit figure of $294.9 million for the 2009-2010 fiscal year as well as a forecasted deficit of $194.3 million for the 2010-2011 fiscal year.
The 2010 budget unveiled only one significant commodity tax change. Effective March 30, 2010, there will be a tax increase for both cigarettes and tobacco. This increase will consist of a one cent increase per cigarette and an increase of two cents per gram of fine-cut tobacco (the equivalent of one cent per rolled cigarette). It is expected that this tax increase will generate an additional $6 million in revenue that will aid existing programs and services and will act as a deterrent for the future use of tobacco products.
Retailers and wholesalers must incorporate these tax increases in their tobacco prices on March 30, 2010 and complete an inventory of tobacco products on hand. This inventory is required so that additional tax, equal to $2 per carton of cigarettes and $2 for each 100 grams of tobacco, can be remitted to the Department of Finance.
Additional information on the Newfoundland and Labrador 2010 budget is available on the province’s web site at:
