Newfoundland and Labrador 2022 Budget Highlights

On April 7, 2022, Newfoundland and Labrador’s Minister of Finance delivered the province’s 2022 budget. These are the highlights of it.

No Changes To Corporate or Personal Tax Rates

Budget 2022 did not change the province’s corporate or personal tax rates.

Retail Sales Tax Has Been Eliminated On Home Insurance

Effective immediately, the 15% Retail Sales Tax has been eliminated on home insurance for one year.

Reduction In Vehicle Registration Fees

Budget 2022 introduces a 50 percent reduction in registration fees for passenger vehicles, light-duty trucks and taxis. This reduction is effective for one year.

Lowering Child Care Fees

Budget 2022 continues the trend of lowering child care fees. Eighteen months ago, child care costs averaged out at $35 a day, and by January 2023, they will average $10 a day.

Encouraging Economic Growth

Budget 2022 introduces three new tax credits to encourage economic growth:

  • Green Technology Tax Credit. This provides a 20% tax credit for up to $1 million to companies who spend money on equipment to promote energy conservation, clean energy generation and efficient use of fossil fuels. 40% of this tax credit is refundable.

  • Manufacturing and Processing Investment Tax Credit. This is a 10% tax credit to support investing in capital equipment by the manufacturing, fishery, farming, and forestry sectors.

  • All Spend Film and Video Production Tax Credit. This is a 30% tax credit that can be applied to total qualified production costs. There is a maximum credit of $10 million annually per project.

We can help!

Are you trying to determine if this year’s budget will impact your finances or your business? We can help you determine the impact of Budget 2022 on you and see if you’ll realize any tax savings.