Robert: Premier Furey announces cut to Provincial gas tax, $15 minimum wage
Published on May 26th, 2022 @ 1:37 PM
At a media briefing held earlier today, Premier Andrew Furey, Deputy Premier and Minister of Finance Siobhan Coady and Minister Responsible for Labour announced additional measures to address the increasingly high cost of living for residents of Newfoundland and Labrador.
Among measures to deal with this ongoing issue, Deputy Premier Coady revealed a temporary 50% decrease in the provincial gas tax. Boasted as the lowest provincial taxing of gasoline and diesel next to Alberta, the cut will see a reduction in the provincial tax on gasoline and diesel by 7 cents per litre, equaling a 8.05 cents per litre (including HST) decrease at the pumps until January 1st, 2023. Changes in the gasoline tax will be introduced in the House of Assembly and will come into effect upon implementation by the Board of Commissioners of Public Utilities.
Also announced were a one-time payment to supplement the cost of furnace oil used for home heating. Households with family net income under $100,000 will receive a payment of $500. While Households with family net income between $100,000 and $150,000 will receive a partial payment of between $200 and $500. Details on how to apply for this supplement will be made available in the coming weeks.
Minister Davis then committed to three increases to the minimum wage in the province, ultimately bring the provincial minimum wage to $15.00 per hour. The increase to $15 will occur in multiple steps, with the first to take place on October 1st, 2022 in the form of a 50 cents change. The next is scheduled for April 1st, 2023, and will see the minimum wage increase by 80 cents. The final increase will happen October 1st, 2023.
The total cost of the new measures is $80 million.