HALIFAX: In a release after the N.S. budget was released on Feb. 18, the Canadian Taxpayers Federation is praising the Nova Scotia government for its commitment to tax relief in the 2025 budget.
“The Houston government is delivering tax cuts that will put more money in the pockets of hard-working Nova Scotians,” said Devin Drover, CTF Atlantic Director.
“These tax cuts will save the average taxpayer more than $1,000 this year.”
“On tax relief, this budget is a step in the right direction. Nova Scotians are struggling with the rising cost of living, and these tax cuts will provide meaningful relief, added Drover.
“Lowering the HST, increasing the basic personal amount, and adjusting tax brackets for inflation will put more money back in taxpayers’ wallets.”
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Key measures include a reduction in the HST by one percentage point, an inflation-based adjustment to income tax brackets and an increase in the basic personal amount from $8,744 to $11,744.
For small businesses, the budget includes a reduction in the small business tax rate from 2.5 to 1.5 per cent and an increase in the small business income tax threshold from $500,000 to $700,000.
“While these tax cuts are a positive step, Premier Tim Houston must now focus on cutting wasteful spending to avoid piling on more government debt,” Drover said.
“This would allow for even more tax relief in future years.”
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The CTF does have concerns though.
“Tax relief is welcome, but the Houston government must also rein in spending,” said Drover.
“Running an $897 million deficit and adding billions to the province’s debt risks higher interest payments that could eat into future tax relief efforts.
“This budget takes a positive step by cutting taxes, but Nova Scotians also need responsible spending. The government should focus on eliminating waste and finding efficiencies to ensure tax relief is sustainable in the long term.”
The Nova Scotia government is projecting a $897 million deficit for 2025, which includes estimated contingency spending. Total spending in this budget increases by $600 million compared to Budget 2024.
The province’s debt is expected to reach $22.3 billion by the end of 2025, a 10 per cent increase from the previous year. Interest charges are projected to cost taxpayers $908 million.”
