On February 4, 2021, the Honourable Caroline Wawzonek, Minister of Finance, announced the Northwest Territories 2021 budget.
Forecasting an operating surplus of $69 million, this year’s budget includes no new taxes and only three noteworthy tax changes.
The budget proposes to reduce the small business tax rate from 4% to 2%, retroactive to January 1, 2021.
In accordance with the Pan-Canadian Framework on Clean Growth and Climate Change, the carbon tax rate will increase, as planned, to $40 per tonne of carbon-equivalent greenhouse gas emissions on July 1, 2021.
In addition, property tax mill rates and certain government fees will be indexed to inflation on April 1, 2021.
Further information on the Northwest Territories 2021 budget can be found on the territory’s website at: https://www.fin.gov.nt.ca/en/services/budget-2021.
If you have any questions about the impact of this budget on your organization, please do not hesitate to contact the Ryan TaxDirect® line.