Today, the Government of Newfoundland and Labrador is announcing an extension of the tax reduction on gasoline and diesel of 7 cents per litre for the next year, until March 31, 2024. This maintains a lower price at the pump by 8.05 cents per litre (includes HST). This reduction is one of many initiatives delivered by the Provincial Government to support residents, families and businesses with the currently high cost of living.
While this rise in cost of living is due to challenges that are global in nature, we know Newfoundlanders and Labradorians feel it close to home. The tax reduction for gasoline and diesel was initially set until January 1, 2023. It was later extended until March 31, 2023. Further extending the tax reduction until March 31, 2024 is an initiative of Budget 2023 at an estimated cost of $63.4 million. Budget 2023 will be delivered in the House of Assembly on Thursday, March 23, 2023.
The Honourable Dr. Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, will be available to media at 1:00 p.m. today (Monday, March 13) to speak about the extension of the gas tax reduction and Budget Day. The availability will take place in front of the House of Assembly, East Block, Confederation Building.
The 7.5 cents per litre tax on gasoline in Newfoundland and Labrador is the lowest among provinces other than Alberta.
This extended gasoline tax reduction is the latest in more than a half billion dollars in targeted short- and long-term measures announced since March 2022 to help residents with the cost of living, as detailed in the backgrounder below.
Quotes
“Our government recognizes the challenges Newfoundlanders and Labradorians face due to the global pressures causing a high cost of living. We continue to make responsible investments in the programs and services Newfoundlanders and Labradorians rely on, while also paying down debt and saving for the future. People throughout the province can expect more of that commitment as we build on the nearly half a billion dollars of cost of living relief given back to residents over the past 12 months.”
Honourable Dr. Andrew Furey
Premier of Newfoundland and Labrador
“The extension of the gasoline tax reduction is one of many ways we are helping residents at this time. Budget 2023, to be delivered on March 23, will continue to build on measures focused on the health of our province, including our financial health.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance
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Government Introduces Additional Measures to Help Residents with the Cost of Living
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BACKGROUNDER
Government of Newfoundland and Labrador Cost of Living Investments
The Government of Newfoundland and Labrador has announced more than a half billion dollars in targeted short- and long-term measures since March 2022 to help residents with the cost of living, including:
Short-term:
- One-time cost of living relief up to $500 for residents of the province who have reached the age of 18 years as of December 31, 2022 and who filed a 2021 tax return with an adjusted income of $125,000 or less;
- Temporarily lowering the price at the pump by 8.05 cents per litre (includes HST) to March 31, 2024. This is possible through a reduction in the provincial tax on gasoline and diesel by 7 cents per litre;
- Home heating supplement program (now closed for applications). The supplement ranged between $200 and $500, was available to residents of the province whose adjusted family income for 2021 was $150,000 or less and had directly incurred costs for the purchase of furnace or stove oil to heat their home;
- In April 2022, provided a one-time benefit for those receiving income support ($5 million);
- Elimination of the 15 per cent retail sales tax on home insurance ($37.8 million); and,
- 50 per cent reduction in registration fees for passenger vehicles, light duty trucks and taxis for one year ($27 million).
Transition:
- Funding for electric vehicle rebates and charging infrastructure ($1.9 million);
- Funding to help homes transition from oil to electricity ($2 million);
- Three increases to the minimum wage based on the recommendation of the Minimum Wage Review Committee:
- On October 1, 2022 the minimum wage increased by 50 cents, bringing it to $13.70 per hour;
- On April 1, 2023, the minimum wage will increase by 80 cents bringing the rate to $14.50 per hour;
- On October 1, 2023, the minimum wage will increase by 50 cents, bringing it to $15.00 per hour; and
- A one-year transitional support program for smaller employers at a cost of approximately $5 million.
Long-term:
- 10 per cent increase to the Income Supplement ($6.8 million);
- 10 per cent increase to the Seniors’ Benefit ($6.5 million);
- Lower child care costs from an average of $35 per day in 2020, to $25 in 2021, to $10 a day starting in January 2023 ($46 million);
- An increase in the Pre-Natal Infant Nutrition Supplement ($0.3 million);
- Physical Activity Tax Credit (estimated $7.0 million); and,
- Expansion of the Bus Pass Program to seniors over age 65 who are receiving the Guaranteed Income Supplement and youth receiving services from the Youth Services Program ($2.1 million).