Government of Nunavut (“GN”) Finance Minister Keith Peterson presented the territory’s 2012-13 budget on February 22, 2012. This budget includes an anticipated increase in revenue of 8.0% in 2012-13 compared to the prior fiscal year. As a result, the government will run a surplus of $37.7 million in 2012-13, while maintaining a reserve of $78.5 million for contingency and supplemental needs. The GN will continue to focus on their long-term goals of investment in housing, fighting crime, poverty and hunger, social services and health for the people of Nunavut. This year’s budget included one commodity tax change.
In order to finance new initiatives focused on smoking prevention and cessation, the GN will increase the tax on tobacco products. It is anticipated, based on current consumption rates, that these tax increases will generate $3 million in additional revenues for the GN. To generate this increased revenue, the tax on cigarettes will increase by four cents per cigarette, or the equivalent of $1 per pack of 25. In addition, the tax on loose tobacco will climb by 6 cents per gram from its current rate of 14 cents per gram to 20 cents per gram.
For further information on Nunavut’s 2012 budget, please see the territory’s web site at: Nunavut Budget 2012.