On March 27, Newfoundland and Labrador released its budget, with no major spending increases or tax cuts.
One item in the budget that will have an impact on the province’s foodservice industry was the government’s announcement that it will increase the threshold for the payroll tax by $100,000, from $1.2 million to $1.3 million. This action will save some restaurateurs up to $2,000 per year. Restaurants Canada continues to lobby the government for the elimination of this payroll tax.
The province estimates that its net debt will be $15.5 billion throughout the next year, and the government reiterated its promise to have the books balanced by 2022.