In an effort to deal with financial deficits, the government of New Brunswick, Canada, recently announced in their 2016 budget that the higher corporate tax rate will be increased from 12 percent to 14 percent, while the lower rate for the first CAD 500,000 in qualifying active income is unchanged at 4 percent.
In addition, the provincial harmonized sales tax (HST) rate will be increased from 13 percent to 15 percent. According to the Department of Finance, a refundable provincial HST credit will be provided to low-to-middle income households to help lessen the impact.
The corporate rate change is effective April 1, 2016, and the HST change is effective July 1, 2016.
Also, effective on April 1, 2016, the real property transfer tax will increase from 0.5 to 1 percent, and the tax on banks will rise from 4 percent to 5 percent.