On March 26, 2013, Finance Minister Blaine Higgs presented New Brunswick’s 2013-14 budget, with the vision of making strategic investments to strengthen the economy and province, and enhancing the quality of life. The deficit for 2013-14 is an estimated $478.7 million, in comparison to an estimated $411.1 million deficit for 2012-13. The projected deficit includes a $110 million pension expense related to the planned conversion of the Public Service Superannuation Act (PSSA) pension plan to the Shared Risk Plan pension model.
Regarding commodity taxes, the only change was to tobacco tax, which will increase by 2 cents to 19 cents per cigarette or equivalent unit, excluding cigars (up from 17 cents). For cigars, the tax will be at 75% of the retail price (up from 50%). These tax increases come into effect March 27, 2013.
In addition to personal income tax increases, the general corporate income tax rate will increase from 10% to 12%.
Additional information on the New Brunswick 2013-14 budget is available on the province’s web site at:
Newfoundland and Labrador
The Honourable Jerome Kennedy, Minister of Finance and President of the Treasury Board, presented Newfoundland and Labrador’s 2013 budget on March 26, 2013. The projected deficit for 2013-14 is $563.8 million, which is an increase from the $430.9 million deficit estimated for 2012-13. In addition to increases to various fees and the implementation of new fees, tobacco tax increases were also announced.. Effective March 27, 2013, the tobacco tax will increase by 1.5 cents per cigarette to 20.5 cents per cigarette (up from 19 cents). No tax changes were announced for other tobacco products.
Additional information on the Newfoundland and Labrador 2013 budget is available on the province’s web site at: