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Fee hikes another tax grab by Liberals, says MLA



Katie Tower
Published on Febuary 11th, 2009
Published on March 5th, 2010
Katie Tower RSS Feed

It's simply another tax grab. That's how Tantramar MLA Mike Olscamp describes the latest move by the Liberals to raise a wide range of government service fees.
And the impact will be felt most by low-income New Brunswickers and small business owners, he said, including those in his riding.
"These fee increases will affect everyone," said Olscamp. " But particularly for seniors on fixed income, it puts an extra burden on them. And I'm concerned that, for some small business operators, this could impact on their ability to expand and thrive."

Topics :
New Brunswick , Tantramar

It's simply another tax grab. That's how Tantramar MLA Mike Olscamp describes the latest move by the Liberals to raise a wide range of government service fees.
And the impact will be felt most by low-income New Brunswickers and small business owners, he said, including those in his riding.
"These fee increases will affect everyone," said Olscamp. " But particularly for seniors on fixed income, it puts an extra burden on them. And I'm concerned that, for some small business operators, this could impact on their ability to expand and thrive."
Last week, the New Brunswick government introduced a long list of fee hikes -- on everything from driver's licences to vehicle registrations to restaurant levies and birth certificates -- that will bring in about $15 million in new revenue each year.
Olscamp insisted the fee increases are a cash grab from the Liberals, who were looking to find a way to bring in much-needed revenue, particularly after recently announcing plans to cut personal taxes by $100 million.
"If you're going to cut $100 million in taxes while also increasing your spending, how do you recover that?" he asked.
He said the government has already announced that its upcoming spring budget will be used for record deficit spending to boost the economy. Add to that another $100 million in tax cuts and the Liberals are quickly piling money onto the province's debt load, said the MLA.
"If you're going to cut taxes, then cut taxes," he said, noting that the Liberals are simply looking elsewhere to make up the lost revenue.
Olscamp also pointed out that the income tax cuts will not really help the people who need it the most -- the working poor.
"They do not really benefit from a tax cut but they still have to pay consumer taxes, such as these fees," he said.
The new fees and fee increases cover a range of government services and will make it more costly for New Brunswickers to drive a vehicle, own a restaurant, get a birth certificate or marriage license, or operate video lottery terminals. Most fee changes are effective April 1.
The price for a driver's licence will jump from $60 to $80, while a licence plate will soon cost $25, up from $15.
Marriage licences, which were previously free, will now cost $100, while the price of birth certificates will jump by five dollars.
The licensing fees for restaurants, bakeries and caterers will also increase, a move that Olscamp said will affect several business operators in Tantramar.
Those fees are going up an average of 80 per cent (from $125 to $225 annually), a jump that concerns the local MLA.
"There are a lot of small businesspeople here who live on the margin . . . and I'm concerned that some of these local restaurant operators have to pay another tax, which will then likely have to be passed on to the consumer."
For businesses with video lottery terminals, there will be a new registration fee - for those with between 15 and 25 VLTs, a $3,200 initial registration and an annual fee of $3,000; and those with up to 10 VLTs, an initial fee of $1,200 and an annual $1,000 charge.
There will also be increases to a range of provincial veterinary fees, provincial park fees, and taxi cab licensing fees.
Olscamp questioned whether the Liberals should be cutting income tax to the tune of $100 million when the province's debt load is rising and the country is in a recession.
He said he's not opposed to tax cuts but noted that, in tough times, the government needs to start making some tough decisions.
"To what level do we increase our debt," he said, noting that the government is spending nearly $1.5 million every day just to service the province's debt load, which sits at over $7 billion.

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