Newfoundland and Labrador businesses look for cost relief as fall legislative session begins

St. John’s, October 30, 2024 – As members of the Newfoundland and Labrador House of Assembly convene for the fall sitting on November 4, the Canadian Federation of Independent Business (CFIB) is calling on the government to eliminate the retail sales tax on insurance and further reduce the small business tax rate in order to address cost pressures on small businesses

Newfoundland and Labrador is the only province in Atlantic Canada to charge a retail sales tax on insurance and at 15%, it is the highest in the country.

“We have long advocated for the elimination of the retail sales tax on insurance for small businesses. We are eager to see it addressed in this sitting for the next budget,” said Beatrix Abdul Azeez, policy analyst at CFIB. “It is a heavy burden for small businesses in Newfoundland and Labrador and it doesn’t even exist in the other Atlantic provinces.”

According to a recent CFIB survey, seven in 10 small businesses in the province are burdened by high tax and regulatory costs. Additionally, eight in 10 are unsatisfied with their insurance premiums and related costs, such as taxes. 

CFIB welcomed the province’s reduction of the small business tax rate from 3% to 2.5% in the 2024 budget, but recommends further lowering it to 1%, aligning with Prince Edward Island. CFIB also encourages the government to adopt a ‘Do No Harm’ approach this sitting by not increasing taxes, costs or fees.

“With elevated input costs continuing to pressure small businesses, we urge the provincial government to prioritize reducing the cost of doing business this legislative session,” added Abdul Azeez.

For media enquiries or interviews, please contact:
Beatrix Abdul Azeez, CFIB
709-743-6069
Beatrix.azeez@cfib.ca 

Methodology
September Business Barometer®: September findings are based on 630 responses from a stratified random sample of CFIB members to a controlled-access web survey. Data reflect responses received from September 3rd to the 16th. Findings are statistically accurate to +/- 3.9 per cent 19 times in 20. Every new month, the entire series of indicators is recalculated for the previous month to include all survey responses received in that previous month. Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger over the next three or 12 months outnumber those expecting weaker performance. An index level near 65 normally indicates that the economy is growing at its potential.  

CFIB Special Survey on Insurance: The survey period was from March 18 – May 9, 2024. The number of respondents was 3,676. For comparison purposes, the margin of error for a probability sample of the same size is +/- 1.62 percentage points, 19 times out of 20.

About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 97,000 members across every industry and region, including 1,600 in Newfoundland and Labrador. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.