Moncton, April 8, 2025 – The Canadian Federation of Independent Business (CFIB) continues to urge the province to provide cost relief and stability for small firms in Budget 2025-26.
“With eight out of 10 small and mid-sized business owners wanting tax relief across the last quarter, the message to the finance minister has been the same since the beginning of the year,” said Louis-Philippe Gauthier, CFIB’s Atlantic Vice-President.
CFIB has asked the provincial government to lower the small business tax rate to 1% and increase the small business income tax threshold to $700,000. Currently, the small business tax rate in Newfoundland and Labrador is tied with New Brunswick as the highest in Atlantic Canada at 2.5% and the threshold sits at $500,000. This year Nova Scotia reduced its small business tax rate and increased its threshold to $700,000. The small business tax rate in Prince Edward Island is currently set at 1%.
“In addition to not introducing new costs for businesses, government needs to eliminate the retail sales tax on business insurance. Our neighbouring provinces are already providing tax relief to small business owners, it’s time for Newfoundland and Labrador to do the same,” Gauthier added.
Newfoundland and Labrador has the highest retail sales tax on insurance in Canada. No other province in the region charges a sales tax on insurance premiums. CFIB has collected over 1,000 signed petitions from business owners asking the government to eliminate the retail sales tax on business insurance.
For media enquiries or interviews, please contact:
Louis-Philippe Gauthier, Atlantic Vice President
(506) 961-5706
Louis-Philippe.Gauthier@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 100,000 members across every industry and region, including 1,700 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.
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