The Canadian Taxpayers Federation (CTF) is urging the Newfoundland and Labrador government to reduce the Harmonized Sales Tax (HST) and implement spending restraints to alleviate financial pressures on residents.
In their 2025 pre-budget report, the CTF recommends cutting the HST by two percentage points, from 15% to 13%, which could result in over $700 in annual savings for the average family. This proposal follows Nova Scotia’s recent announcement of a one-point sales tax reduction effective April 1, 2025. The CTF emphasizes that such a move would help families cope with the rising cost of living and keep the province competitive.
In addition to tax cuts, the CTF suggests replacing corporate subsidies with broad-based business tax cuts, aligning government compensation with the provincial labor market, and adopting spending reduction measures outlined in the Premier’s Economy Recovery Team’s report. These recommendations aim to curb borrowing and reduce the $1.1 billion annual interest payments on the provincial debt. The Newfoundland and Labrador budget is scheduled to be delivered on April 9, 2025.
In related economic developments, the provincial government has approved seven new projects through the Green Transition Fund, designed to promote environmentally sustainable business practices and clean technologies.
Furthermore, as of April 1, 2025, the minimum wage in Newfoundland and Labrador has increased to $16.00 per hour. This 2.5% increase aligns with the province’s legislated approach of adjusting minimum wage annually based on the national change in the Consumer Price Index.
These developments reflect ongoing efforts and discussions aimed at improving the economic well-being of Newfoundland and Labrador residents.
Newfoundland and Labrador Taxpayers Call for Sales Tax Cut Amid Rising Costs
