Newfoundland and Labrador Highlights Tax Changes Effective January 1, 2019

The Government of Newfoundland and Labrador released highlights of provincial sales tax changes that took effect January 1, 2019. The press release notes that automobile insurance will decrease by two percent to 13%, with further reductions of one percent each in 2020, 2021, and 2022. In addition, the province’s carbon pricing plan which became effective January 1 eliminates the temporary four-cent gas tax and the five-cent tax on diesel. At the same time, the required federal carbon tax on gasoline equal to 4.42 cents and on diesel equal to 5.37 cents will be implemented. Home heating fuels supplied to consumers will not be subject to the federal government carbon tax.