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Newfoundlanders and Labradorians are paying less for automobile insurance but a little more for fuel thanks to tax changes that came into effect on Jan. 1.
Following through a Budget 2018, the provincial government has reduced the tax on automobile insurance by two per cent. Residents will see further reductions of one per cent in 2020, 2021, and 2022.
Meanwhile, as part of the province’s carbon price plan, government has eliminated the four cent tax on gas and the five cent tax on diesel. In their place, the federally-mandated carbon tax has been added at 4.42 cents on gasoline and 5.37 cents on diesel. Under the provincial carbon pricing program, consumers will not be taxed on home heating fuels as they would have been under the Federal Government’s plan.