2012 New Brunswick budget highlights
Canadian tax alert, March 27, 2012
The Minister of Finance, Blaine Higgs, presented the 2012 New Brunswick budget this afternoon.
The budget focus is on restraint, efficiency and targeted revenue increases. The 2012-2013 operating deficit is projected at $182.9 million, with an aggregate net debt of $10.8 billion the end of the fiscal year. Revised estimates in respect of the 2011-2012 fiscal year project the deficit to be $471 million with net debt of $10.1 billion.
Economic growth is forecast at 2.1% for New Brunswick in the 2013 fiscal year, with 2012 growth of 1.3%.
Income Tax Changes
There are no changes announced with respect to corporate or personal income tax rates with the exception of the following:
- Financial Corporation Capital Tax will be increased from 3.0% to 4.0% effective April 1, 2012.
- The dividend tax credit for individuals in respect of dividends received from corporations subject to the general corporate income tax rate will be “reviewed”. No specific changes are proposed within the budget documents.
Real Property Transfer Tax
- The Real Property Transfer Tax will increase from 0.25% to 0.5% effective June 1, 2012
Mineral Resource Royalty Structures
Although not specific in the budget documents, the government has been reviewing the royalty structure with a view to increasing revenue from development of natural resources.
Balancing the Budget
The government has indicated its intention to return to a balanced budget by 2014-2015.
The Future of Tax
- Deloitte is Canada’s largest tax practice and a global tax firm with a unique perspective on competitive tax policy and the key drivers of national prosperity.
- With the right tax policy, we believe that Canada can be more productive and globally competitive. The key lies in creating a tax ecosystem capable of fostering innovation and investment while supporting the objective of a balanced budget.
- The Future of Productivity
Visit this page for our continuing coverage of all provincial and federal budgets.
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