Newfoundland and Labrador is raising the threshold on payroll tax exemptions from $1 million to $1.2 million, retroactive to Jan. 1, 2011.
Finance Minister Tom Marshall announced the changes in the province’s 2011 budget, which was tabled on April 19. Raising the threshold will remove 90 businesses from the tax rolls and reduce the tax burden for 845 others.
“This measure will put $2.3 million back in the hands of our province’s employers,” he said.
Prior to the budget, the St. John’s Board of Trade advocated for the elimination of the province’s payroll tax, saying it decreased motivation for hiring workers and increasing salaries. But Marshall said eliminating the payroll tax completely would have cost the government $63 million, according to a report in The Telegram.
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