Government to increase tax on financial institutions11 May 2012
FREDERICTON (GNB) – Legislation was introduced today that would increase a tax on financial institutions, the Financial Corporation Capital Tax, from three per cent to four per cent.
“It is important that everyone do their part to help rebuild New Brunswick, address our province's fiscal challenges and work together to build a stronger economy,” said Finance Minister Blaine Higgs, “This measure will provide an estimated five million dollars annually that can be used to reduce our deficit.”
The tax is levied on the taxable capital of financial institutions in excess of $10 million as defined in the New Brunswick Financial Corporation Capital Tax Act.
Financial institutions include: banks, trust and loan companies, which accept deposits as defined by the Canada Deposit Insurance Corporation Act. Credit unions and caisse populaires are not included.
“This legislation was a commitment in our recent budget and will help bring our tax more in line with other provinces in Atlantic Canada,” said Higgs.
Increasing the tax rate to four per cent will make New Brunswick's rate equal to that of Nova Scotia.