'We’re not doing it because there’s an election': N.B. gov’t suggests tax cuts to come following status-quo budget

After delivering a pre-election provincial budget that largely holds steady, the Blaine Higgs’ government is leaving the door wide open to announce tax cuts “shortly.”

Tuesday’s $13.3-billion budget (which includes a $41-million surplus and 6.4 per cent increase in spending) does not include any major tax cuts.

“That doesn’t mean they’re not coming,” said Finance Minister Ernie Steeves in an interview with CTV’s Todd Battis.

“We’re always looking for a good tax break,” said Steeves. “There may be another one coming up shortly.”

Steeves dismissed the notion of any tax cut being timed to run alongside a writ drop.

“It’s an election year, but no, we’re not doing it because there’s an election,” said Steeves.

New Brunswick’s fixed election date is Oct. 21.

The Canadian Taxpayers Federation has urged the Higgs government to cut the HST by two percentage points, which would amount to $400 million.

“Unfortunately in this budget there is not a lot here for those who are experiencing an affordability crisis,” said Jay Goldberg, interim Atlantic director of the Canadian Taxpayers Federation.

While Tuesday’s budget was being announced, the province’s Energy and Utilities Board was approving NB Power’s second rate hike application for 2024-25. Altogether, the EUB approval will increase NB Power residential customer bills by 13 per cent next month.

During Wednesday’s question period, the official opposition once again asked the provincial government to eliminate the provincial HST portion on power bills.

“In New Brunswick, when power rates go up, tax revenue to government goes up,” said Liberal leader Susan Holt. “We believe that home electricity is essential and should not be taxed.”

Natural Resources and Energy Development Minister Mike Holland responded to Holt’s question, saying the federal carbon tax had added $110 million in extra fuel costs at NB Power. Holland would later challenge Holt to join a PC motion asking Ottawa to eliminate the federal carbon tax altogether. On Friday, Holt asked the federal government to suspend the carbon tax increase scheduled for April 1 until April 2025.

The provincial Tories have pointed to its $300 Workers Benefit program as an effective affordability relief measure.

However, application ease and eligibility for the program have been criticized.

Green Party leader David Coon said several constituents have contacted him “frustrated” with the application process.

“It’s as if this government is trying to suppress the uptake of their affordability benefits by wrapping them tightly in red tape so they remain largely unspent,” said Coon, during a members statement in the legislature on Wednesday. “Surely, that’s not true.”

The provincial government has set a June 30 deadline for its Workers Benefit program.

For more New Brunswick news visit our dedicated provincial page.