The 2016 budget released by NL Finance Minister Cathy Bennett yesterday will result in a significant financial impact on people in Nunatsiavut, and in the rest of the province.
The future impact of Budget 2016 is shown in the following highlights:
The average household in NL will be paying nearly $3000 more in taxes and fees.
The HST will rise from 13% to 15%, despite the provincial Liberal government’s previous promise not to increase it.
Tax rate hikes for all incomes will begin on July 1, 2016.
A temporary increase of 16.5 cents/litre, effective June 2, 2016, will double the current tax. The increase is to be reviewed in 6 months.
Fees for government services will increase. An example is Vehicle Registration is to increase by $20.
A temporary deficit-reduction levy will be introduced. For example, those with an individual Income between $49,500 and $72,000 will have to pay $600.
The levy is to be phased out in 2018. Individuals with an income of $20,000 or less will be exempt from the levy.
Chartered Air Service Fees for non-beneficiaries are to double to $80.
Snowmobile registration will increase from $23 to $95.
ATV registration will increase from $57 to $95.
Driver’s licence renewal is to increase from $100 to $125 ($115 online).
There will be increases in numerous advanced education and skills fees. For example, the Journeyperson exam increases from $0 to $50.
Other NL Budget 2016 highlights include:
Reducing the regular operational grant to Memorial University by $14 million.
Reducing grants and increasing loans for NL students.
Increasing class sizes.
Eliminating apprenticeship scholarships.
Eliminating the $75,000 Sport and Recreation Grant to the Sheshatshiu Innu First Nation Band Council.
The Court system is to be restructured.
Some government offices are to be closed.
According to the NL government, the total savings to Budget 2016 are forecast at $113 million.
The savings are a result of eliminating vacant positions, delayed recruitment, reduction in discretionary (or optional) spending, and reviewing operating and programming expenses in NL departments.
OK Radio will have more on NL Budget 2016 in the coming days.
With files from CBC.ca.