On February 25, 2020, the Honourable Caroline Wawzonek, Minister of Finance, presented the fiscal 2020–2021 Northwest Territories budget. The aim of this budget is directed at four priorities – economic growth, environmental stewardship, and a healthy and better-educated population.
This year’s budget did not contain any announcements related to new taxes. However, the Minister announced an increase to the carbon tax, as noted below.
Carbon Pricing
The budget address confirmed a commitment to increase the carbon tax rates to $30 per tonne of greenhouse gas emissions, effective July 1, 2020. The carbon tax was introduced in the 2019 budget and became effective July 1, 2019. This rate increase is a federally mandated adjustment as part of the territories’ commitment to carbon pricing under the Pan-Canadian Framework.
In addition, the territory proposed approximately $11 million in spending aimed at residents and businesses to ease the impact of the carbon tax on the territories’ cost of living.
More Information
Further information on the 2020–2021 Northwest Territories budget is available on the Northwest Territories Department of Finance website at:
Northwest Territories Budget 2020
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirectTM line at 1-800-667-1600.