Reduce sales tax in N.B. budget, says one group

New Brunswick should return some of its surplus to residents, according to the Canadian Taxpayers Federation.

Jay Goldberg, interim Atlantic director, said the Higgs government can do so by lowering the sales tax.

“Because things are costing more, the government is actually bringing in hundreds of millions of dollars more than they expected in sales tax revenue,” Goldberg said in an interview.

Goldberg’s comments come as the New Brunswick government prepares to unveil its latest provincial budget on Tueday.

The government projected a $35-million surplus in its 2022-23 budget, a number which has since grown to $862 million.

Goldberg said reducing the sales tax by two per cent would cost the government around $400 million in revenue, but provide immediate relief to New Brunswickers.

In fact, the federation exepcts it would save the average New Brunswick family nearly $1,000 a year.

“You’re facing higher costs at the grocery store, at the gas pump, and all of these extra expenses are really adding up. People really need help and they need more money back in their pockets,” said Goldberg.

The remaining $400 million could be used to help pay down the province’s debt and increase spending in health care and long-term care, he said.