Tax competitiveness in Newfoundland & Labrador is increasingly important given capital mobility in a globalized economy. Tax rates are one of the many factors that businesses consider when choosing where to base operations. With a resource based economy facing decreased commodity prices, creating efficient and competitive tax policy is essential to diversifying the economy of Newfoundland Labrador. Competitive taxation is particularly necessary for Newfoundland & Labrador given that business costs such as payroll, transportation and utility costs are high in the province.
Competitive tax policy is a lever that government must control in order to attract investment and allow local businesses to compete globally and expand, creating jobs and increasing the quality of life of Newfoundlanders and Labradorians.