Finance Minister Roger Melanson presented New Brunswick’s 2015-16 budget on March 31, 2015. This budget centered on three strategic concerns: job creation, fiscal responsibility and help for families. While the deficit for 2015-16 is estimated to be $477 million, the province is anticipating real Gross Domestic Product (GDP) growth of 1.8% in 2015.
The government’s hope is that, after several years of weak capital spending, improved investment activity (headed by capital spending by all levels of government and private sector investment) will result in a stronger domestic economy in 2015. As well, an increase in activity from public and private investment in the mining and forestry sectors should boost employment in the current year.
Included in this year’s budget are two interesting tax changes which have been summarized below:
Income Tax Measure
Previously, the top personal income tax rate in New Brunswick was 17.84%. However, effective January 1, 2015, two new personal income tax brackets will come into effect: 21% for taxable income between $150,000 and $250,000; and 25.75% for taxable income greater than $250,000.
Sales Tax Measure
Effective April 1, 2015, the tax on gasoline will rise by 1.9 cents to 15.5 cents per liter, and the tax on diesel fuel will increase by 2.3 cents to 21.5 cents per litre. In order for these fuels to be taxed at the new rates, retailers will need to take an inventory of gasoline and motive fuel (diesel) on hand, as at midnight on March 31, 2015 and remit additional tax based on the difference between the previous and new tax rates.
Additional information on the New Brunswick 2015-16 budget is available on the province’s web site at: