News and Insights

Yukon Budget 2016

Tax Development Apr 07, 2016

On April 7, 2016, Yukon Premier Darrell Pasloski delivered the territory’s 2016 budget, which contained an estimated surplus of $9.48 million. This year’s budget focuses on growing the economy, preventing net debt, and funding education, health care and infrastructure.

While this year’s budget did not include any commodity tax changes, it did include an announcement that the territory will not be implementing a carbon tax. The Yukon government believes that a carbon tax is simply an additional consumption tax, and it does not want to burden its taxpayers any further. It is also feared that a tax of this nature might make its resource sector uncompetitive. The Yukon feels strongly that it has done its part to limit climate change and, as proof, cited the fact that the Yukon has reduced its carbon emissions each year since 1990. These reductions are primarily due to the fact that 95% of the Yukon’s energy is derived from hydroelectric sources, rather than fossil fuels.

The 2016 Yukon budget documents are available from its Department of Finance website at:

http://www.finance.gov.yk.ca/general/publications.html