The Canadian Taxpayers Federation is praising the Wakeham government for its commitment to tax relief in the 2026 budget.

“The Wakeham government is delivering tax cuts that will put more money in the pockets of hard-working Newfoundlanders and Labradorians and their businesses,” said Devin Drover, CTF Atlantic Director and General Counsel. “Together these cuts will save Newfoundland and Labrador taxpayers over $200 million this year.”

For individuals, this includes increasing the basic personal amount income tax exemption, the amount you can earn before paying provincial income tax, from $11,188 to $15,000. 

The Wakeham government is also extending the 50 per cent reduction in vehicle registration fees, which will save taxpayers $25 million.

For Newfoundland and Labrador businesses, the budget includes a 0.5 percentage-point reduction in the general corporate tax rate, from 2.5 to two per cent. Further, the budget includes commitments to reduce the tax by another 0.5 percentage points annually for the next two years. 

“These tax cuts are a positive step and now Wakeham must now focus on cutting wasteful spending to start getting the provincial debt under control,” Drover said. “This would allow for even more tax relief in future years.”

The Newfoundland and Labrador government is planning to increase the debt by $688 million this year.

The province’s debt is expected to increase to $21 billion by the end of 2026, a seven per cent increase. Interest costs are now projected to cost taxpayers $1.2 billion, which is about $2,100 per Newfoundlander and Labradorian.