St. John’s, June 4, 2024 – The Newfoundland and Labrador (NL) House of Assembly spring sitting yielded some positives for small businesses, including a reduction of the small business tax rate from 3% to 2.5% and the introduction of business navigators to help identify and eliminate red tape.
The Canadian Federation of Independent Business (CFIB) is pleased that the provincial government took on some of its recommendations during this sitting; however, as members of the House of Assembly begin their summer recess, CFIB is urging them to remain small business minded.
“We are pleased with the positive steps for small businesses taken in this session,” said Beatrix Abdul Azeez, Policy Analyst at CFIB. “There are many issues left for government to undertake including eliminating the retail sales tax on insurance.”
Recent data from CFIB’s Monthly Business Barometer® reveal that insurance costs remain a major cost constraint for almost eight in ten small businesses in the province. CFIB has been calling on the NL government to eliminate the retail sales tax on insurance. NL is the only province in the Atlantic region to charge this tax, which at 15%, is the highest across Canada.
“The spring session lays out a solid foundation for the NL government to do more for small businesses. Although there was no movement on the elimination of the tax on insurance this sitting, we remain hopeful for the fall session,” Abdul Azeez added.
Beatrix Abdul Azeez, CFIB
709-743-6069
Beatrix.azeez@cfib.ca
Final results for May Business Barometer®. April findings are based on 602 responses from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflects responses received from May 8 to 15. Findings are statistically accurate to +/- 4.0%, 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.
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 10,200 in Atlantic Canada. 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.