Canada: Newfoundland 2016 budget bills | KPMG | GLOBAL

Canada: Newfoundland 2016 budget bills receive “first reading”

Canada: Newfoundland 2016 budget bills

Newfoundland Bills 15, 16, 18, 21 and 23—to enact certain measures that were announced in Newfoundland's 2016 budget— received first reading on 19 May 2016. Newfoundland Bill 20, also to enact certain measures from Newfoundland's 2016 budget, received first reading on 24 May 2016. Newfoundland has a majority government.


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The bills contain measures to:

  • Increase the general corporate income tax rate to 15% (from 14%), retroactive to 1 January 2016 (Bill 15)
  • Increase the financial corporations capital tax rate to 6% (from 5%), effective 1 January 2016 (Bill 16)
  • Increase the insurance companies tax rate to 5% (from 4%), effective 1 July 2016 (Bill 21)
  • Increase the retail sales tax on used vehicles to 15% (from 14%), effective 1 July 2016 (Bill 18)
  • Increase the tax rate on diesel fuel grade of gasoline to 21.5 cents per litre (from 16.5 cents per litre), increase the tax rate on gasoline for use in an aircraft to 2.5 cents per litre (from 0.7 cents per litre), and increase the tax rate on all other grades of gasoline to 33 cents per litre (from 16.5 cents per litre), all effective 2 June 2016 (Bill 20) 
  • Provide a rebate of 10 cents per litre for gasoline, other than diesel fuel, in the Labrador border zones, effective 2 June 2016 (Bill 23)


Read a May 2016 report [PDF 48 KB] prepared by the KPMG member firm in Canada: Newfoundland 2016 Budget Bills Receive First Reading 

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