How retailers are impacted by New Brunswick’s 2022-23 budgetMarch 23, 2022
On March 22, 2022, the New Brunswick government tabled its 2022-23 budget. The budget features both property and income tax relief as well as several new investments in education and health care. The province’s economy is moving beyond the pandemic and forecasting GDP growth of 2.2 per cent. The province’s population is expected to increase by 0.9 per cent while employment is expected to increase by 1.4 per cent in 2022. The government will increase program spending by 5.5 per cent for the upcoming fiscal year as it helps stimulate economic recovery. Despite the increased spending, the province is projecting a budget surplus of $35.2 million for 2022-23.
There is a renewed optimism in New Brunswick. Many of the budget initiatives aim to keep more money in the pockets of New Brunswickers, which could be good news for retailers in the province.
Of interest to retailers:
- Over the next three years, the government will phase in a 15 per cent cut to the provincial commercial property tax rate;
- The government will cap tenant rent increases for this year while instituting a three-year reduction of property taxes for apartment building owners;
- The federally imposed carbon tax will increase from $40 per tonne to $50 per tonne on April 1, 2022. This will represent an increase of 2.21 cents per litre on gasoline (moving from 8.8 to 11 cents per litre) on April 1, 2022. The carbon tax will bring in $40 million in additional revenue;
- To offset the carbon tax in 2022, the government will introduce $40 million in personal income tax relief. The threshold below which, low-income people do not pay income tax will increase from $18,268 to $19,177. 2022 will also see the government increase the threshold of eligibility for the non-refundable provincial tax credit (basic personal amount) from $10,817 to $11,720;
- For social assistance recipients: An increase to social assistance rates of 3.8 per cent under the Transitional Assistance Program and the Extended Benefits Program, will benefit about 19,000 households. Government will also introduce an income exemption on the first $200 of Canada Pension Plan income for social assistance recipients;
- The province’s debt will remain at just under $13 billion;
- As the province continues to push the amalgamation of small municipal units, the government has allotted $10 million to continue this process.
For questions or more information contact
Director, Government Relations (Atlantic)