Financial Measures (2020) Act Introduced
Finance and Treasury Board Minister Karen Casey introduced the Financial Measures (2020) Act today, March 3.
The act provides the legislative authority to implement measures in Budget 2020-21: Better Together and legislative measures which have financial consequences. It is a routine part of the budget process.
“Budget 2020-21 reflects the hard work of Nova Scotians to put this province on a solid fiscal foundation,” said Finance and Treasury Board Minister Karen Casey. “We are in a strong position to lift people up, to make lasting investments and to support those who need it most.”
The act will:
- amend the Income Tax Act to decrease the general and small business corporate income tax rates on April 1, 2020, and extend the digital animation tax credit and digital media tax credit to Dec. 31, 2025
- amend the Revenue Act to increase tobacco taxes, introduce a tax on vaping products starting September 2020, and require all retailers to obtain a permit to sell vaping products starting July 2020
- amend the Gaming Control Act to provide immunity to the province, ministers responsible for the act, the Nova Scotia Gaming Corp., the Atlantic Lottery Corporation and casino operators against class actions lawsuits and liability for punitive damages
Budget 2020-21 is focused on improving the lives of Nova Scotians, building on economic success, modernizing much-needed infrastructure and fostering confidence in a brighter future.
- Budget 2020-21 is government’s fifth consecutive balanced budget
- the corporate tax rate will decrease by two per cent to 14 per cent
- the small business tax will decrease from three per cent to 2.5 per cent
- tobacco tax will increase two cents on cigarettes, from 60 per cent to 75 per cent of the suggested retail price on cigars and by 40 cents per gram on fine cut and other tobacco products
- vaping substances, with the exception of cannabis vaping substances already taxed under the Coordinated Cannabis Taxation Agreement and tobacco products taxed under the Revenue Act, will be taxed at the rate of $0.50 per millilitre for liquids, $0.50 per gram for solids and vaping devices will be taxed at a rate of 20 per cent of their suggested retail selling price
- all retailers, wholesalers, and manufacturers of vaping products will be required to be licensed to sell their products in Nova Scotia, effective July 1, 2020
For highlights from Budget 2020-21 visit https://novascotia.ca/budget/
To view the budget documents, visit https://beta.novascotia.ca/documents/budget-documents-2020-2021