News & Insights

Tax Alert | Newfoundland and Labrador Budget 2022

Tax Development Apr 08, 2022

On April 7, 2022, Deputy Premier, Minister of Finance, and President of the Treasury Board, Siobhan Coady, presented Newfoundland and Labrador’s 2022-2023 budget. Projecting a deficit of $351 million, this year’s budget maintains the high level of spending introduced last year, with significant investments earmarked for childcare, education, healthcare, and support for businesses and communities.  

No tax or provincial fee increases were included in this year’s budget. However, the budget contains a few new tax credits aimed at encouraging more investment in business. In addition, the province announced one commodity tax measure to address the rapidly increasing cost of living for residents of Newfoundland and Labrador.

Corporate Tax Measures

Green Technology Tax Credit

To help businesses with specific capital costs related to transitioning to a low-carbon economy, the province has announced plans for a new 20% Green Technology Tax Credit.

Manufacturing and Processing Investment Tax Credit

To support its manufacturing, agricultural, fishing, and forestry sectors, the province intends to introduce a new 10% Manufacturing and Processing Investment Tax Credit for eligible investments in new capital equipment.

Film and Video Production Tax Credit

The province will introduce a new 30% All Spend Film and Video Production Tax Credit, which will apply to total eligible production costs, subject to an annual maximum of $10 million per project.

Further details on all three of the new tax credits announced as part of this year’s budget are expected to be released in the coming days.

Commodity Tax Measure

Temporary Relief from Retail Sales Tax on Home Insurance

The province announced a one-year elimination of the 15% Retail Sales Tax (RST) on home insurance, effective April 7, 2022. Other types of taxable insurance will remain subject to RST.

More Information

For information on new and extended government funding initiatives included in this year’s provincial budgets, please navigate to Mentor Works News.

Further details on Newfoundland and Labrador’s 20222023 budget may be found on the province’s website at:

If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.