In order to increase its revenues and reduce the deficit forecast for 2004-2005, the government proposed a number of changes to taxes. The Minister of Finance provided a full briefing to the committee on February 16, 2004.
Members were concerned about the impact of these tax changes on the already high cost of living and doing business in the Northwest Territories.
The committee advised the Minister it would support an increase to the corporate income tax rate. Members believe this increase is unavoidable. At the current rate of 12 percent, the GNWT is suffering a net revenue loss due to the formula Canada uses to calculate its grant.