On May 24, 2024, the Honourable Caroline Wawzonek, Minister of Finance, presented the Northwest Territories budget for 2024–25. The budget prioritizes fiscal sustainability, housing affordability, healthcare, and community safety.
This year’s budget contains one new tax announcement and a couple of tax increases, as noted below.
Vaping Products Tax
Effective July 1, 2024, vaping products will be subject to tax at the federal rates under the Canada-Northwest Territories Coordinated Vaping Products Taxation Agreement. The proposed rates are $1.12 per two millilitres or grams up to 10 millilitres or grams and $1.12 per 10 millilitres or grams above that threshold. The $1.12 rate is proposed as it is contingent on the federal government passing its 2024 budget; otherwise, both rates will be $1.00.
Carbon Tax
The Northwest Territories carbon tax rate increased by $15 to $80 per carbon-equivalent tonne of greenhouse gas emissions, effective April 1, 2024. Carbon tax exemptions continue to apply to aviation fuel and diesel fuel used to generate electricity for community distribution.
In addition, effective April 1, 2024, the carbon tax on diesel heating fuel deliveries will be rebated at source for everyone except large emitters. This change is consistent with the federal government’s announcement in October 2023 to suspend the carbon tax on diesel heating fuel for three years under its backstop carbon pricing system and will be in place until March 31, 2027.
Property Tax
Consistent with previous years, property tax mill rates will be increased based on indexing to inflation.
More Information
Further information on the 2024–25 Northwest Territories budget is available on the territory’s website here.
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to contact the Ryan TaxDirect® line at taxdirect@ryan.com or 1.800.667.1600.
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