The Canadian Federation of Independent Business (CFIB) wants the provincial government to scrap the retail sales tax on insurance and further reduce the small business tax rate during the upcoming session of the provincial legislature.

The House of Assembly resumes for a 15-day fall sitting on Monday.

The CFIB notes Newfoundland and Labrador is the only province in Atlantic Canada to charge a retail sales tax on insurance, and at 15 per cent they say it is the highest in the country.

CFIB policy analyst Beatrix Abdul Azeez calls the tax a “heavy burden” for small businesses, noting that it “doesn’t even exist in the other Atlantic provinces.”

On the small business tax rate, the federation welcomed a reduction in the 2024 budget from 3 to 2.5 per cent, but they say it should be further reduced to 1 per cent, which would align with the rate in P.E.I.