Nova Scotia: 2020 Budget

 In Alerts, News, Wolters Kluwer

Nova Scotia’s Finance and Treasury Board Minister, Karen Casey, presented the 2020 Budget on February 25, 2020. The Budget projects a surplus of $55 million for the upcoming fiscal year. The Budget included several new tax changes, which are listed below.

Corporate Rate Reductions

As announced earlier in February, the general corporate income tax rate will be reduced from 16% to 14%, and the small business income tax rate will be reduced from 3% to 2.5%. Both changes will take effect on April 1, 2020.

Digital Media and Digital Animation Tax Credits

Budget 2020 announced that both the Digital Media Tax Credit and the Digital Animation Tax Credit will be extended until December 31, 2025.

Nova Scotia Child Benefit

The income threshold for the Nova Scotia Child Benefit will be increased from $26,000 to $34,000, which will allow more families to qualify.

Tobacco Tax Rate Increases

The following tobacco tax rate increases take effect on February 26, 2020:

• tax on cigarettes and tobacco sticks will increase from 27.52₵ per unit to 29.52₵;
• tax on fine cut tobacco will increase from 26₵ per gram to 40₵ per gram;
• tax on cigars will increase from 60% of the retail selling price to 75%; and
• tax on other tobacco products will increase from 18.52₵ per gram to 40₵ per

New Tax on Vaping Products

Nova Scotia will introduce a tax on vaping products, including those that do not contain nicotine, starting September 15, 2020. Vaping substances will be taxed at the rate of $0.50 per millilitre, while vaping devices and components will be taxed at a rate of 20% of their suggested retail selling price. This will not apply to cannabis vaping products, which are taxed according to the Coordinated Cannabis Tax Agreement. All retailers, wholesalers, and manufacturers of vaping products will be required to obtain a provincial permit, effective July 1, 2020.

Recommended Posts