Insurance premiums are to take a 15% leap under the newly-released Newfoundland and Labrador budget amid a flurry of revenue-raising charges, increases and levies. The tax on insurance premiums will take effect on July 1.
The troubled province, hit sharply by the downturn in oil prices and grappling with a substantial deficit is upping approximately 300 fees for licences, permits, fines and inspection, and introducing another 50.
Income taxes are rising, in a staggered program that undoes previous decreases. Even the lowest earners in the province will be subject to an increase of one per cent, while those at the highest level will be hit by a 3 percent income tax hike.
In addition to the increases in income tax, a "temporary deficit reduction levy” will be in force from Canada Day that will result in those making $25,000 paying up an extra $300, a charge that doubles for those making $50,000 and goes to $750 for those on $75,000 before topping out at $900. The fee will be in place at at least those levels until 2018.
