Debates of March 18, 2004 (day 3)

Thank you, Mr. Speaker. Mr. Speaker, if I may draw your attention to page 4 of the budget address, there’s a quote in there that says current projections show this virtually unchanged at $70 million. That refers to our deficit. Now it also points out, going a little further into the quote, it says, from the Finance Minister yesterday, we project a $46 million operating deficit for 2004-2005 and that was with some very classy intervention with raising some taxes, creating some revenues, finding some money. But the obvious question that has caused me some concern is, has the Finance Minister considered looking at any avenues other than the bread-and-butter basics of what people have to call their personal income. The personal income, being the pay cheque, is the only main source that people can have for getting money. So did the Finance Minister consider raising revenues through the sin tax?

Minister of Finance.

Return To Question 31-15(3): Raising Revenues Through The Sin Tax

Thank you, Mr. Speaker. We did look at a number of tax revenue options and fee options. We’ve gone forward with a number of them in this budget so that we can have revenue come to this government during this upcoming fiscal year. The areas of the cigarette and alcohol taxes and fees were looked at. We are highest already, for example, on the cigarette taxes compared to other jurisdictions right now. We are also amongst the highest in the alcohol products markups for the Government of the Northwest Territories. So those were not looked at as areas of increases. They were increased in two previous years. Thank you.

Supplementary, Mr. Hawkins.

Supplementary To Question 31-15(3): Raising Revenues Through The Sin Tax

Thank you, Mr. Speaker. I guess the next question that follows up is will the Minister address this in the next upcoming budget? Thank you.

Minister of Finance.

Further Return To Question 31-15(3): Raising Revenues Through The Sin Tax

Thank you, Mr. Speaker. Mr. Speaker, we will again be going back to the table and looking at all the options we have before us. Right now we’ve highlighted reductions going forward, we’re dealing with the tax initiatives upfront and depending on what happens in our discussions with the federal government, we will once again have to look at all our avenues as a government. Right now, again, we’re highlighting reductions for the two upcoming years of $20 million in each of the two fiscal years going forward. Thank you.