On February 24, 2022, Minister of Finance, Darlene Compton, presented Prince Edward Island’s 2022–23 budget. This year’s budget focuses on creating an improved future for the Island and its residents, following two uncertain years of unprecedented challenges.
Forecasting a deficit of $92.9 million, the budget contains two noteworthy commodity tax changes.
To reduce the overall use of addictive nicotine products, this year’s budget contains two initiatives. First, the province has committed to introducing a new tax on vaping products during the upcoming year. Second, tobacco tax rates will be increased in 2022. At the time of the budget address, details regarding the timing and magnitude of these changes were not provided. However, we expect further details to be released at a later date.
More Information
Further information on Prince Edward Island’s 2022 budget may be found on the province’s website at
https://www.princeedwardisland.ca/en/information/finance/provincial-budget-operating-budget
If you have questions about any of the tax changes proposed in recent Canadian budgets, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.
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- Prince Edward Island