The St. John’s Board of Trade is advocating for the elimination of the province’s payroll tax prior to the release of the Newfoundland and Labrador’s budget on Tuesday.
The Health and Post-Secondary Education Tax or payroll tax, as it’s commonly known, decreases the motivation for hiring more workers and raising salaries and is a deterrent to locating a business in the province, according to the organization.
Reducing the payroll tax by 10 percentage points would increase employment by 10 per cent in the long run, said the board, citing estimates.
The rate for the tax is two per cent and the exemption threshold is $1 million for all employers.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.