The government tabled its budget on May 31, 2021 featuring a massive deficit ($826 million for 2021-22) and hope for a rebound in the oil and gas industry. Government expenses are expected to grow for at least another year and thus far, the government seems to be avoiding major cuts.
The budget announced targeted tax increases including:
- A $0.20 per litre sugar sweetened beverage tax, which will be implemented on April 1, 2022. There was no consultation with industry on this issue. There are no details as to how this tax would be implemented. RCC is making inquiries and will provide an update to members once it receives additional detail.
- A $0.03 increase per cigarette and $0.06 cents per gram of fine cut tobacco. The rebate rate for Labrador Border zones on the sale of these products will increase by the corresponding amount.
Additional announcements of note to retailers:
- An increase in the Mother and Baby Nutrition Supplement from $60 to $100 per month.
- $25 million to improve cellular and broadband service.
- $20 million to assist small businesses and community organizations with costs resulting from COVID-19.
$7 million Physical Activity Tax Credit which will provide a refundable tax credit of up to $2000 per family as an incentive to access sports and recreational activities.