St. John’s, NL, October 22, 2026 – As the fall sitting of the House of Assembly begins on October 26, the Canadian Federation of Independent Business (CFIB) is highlighting both the progress achieved this year and the work that remains to keep Newfoundland and Labrador competitive for small businesses.
Small businesses across the province continue to face high costs. CFIB’s latest Monthly Business Barometer® shows insurance costs are causing difficulties for 77% of small firms, fuel costs for 68%, and tax and regulatory costs for 66%.
“Insurance is the number one cost our members are struggling with, and government adds 15% on top of every premium, the highest rate in Canada,” said Jonathan Galgay, Director of Legislative Affairs, Newfoundland and Labrador, CFIB. “Our neighbours in New Brunswick, Nova Scotia and Prince Edward Island charge nothing. Removing this tax once and for all would put money directly back into the pockets of small business owners.”
Positive steps toward a stronger business climate
CFIB commends the government for cutting the small business tax rate from 2.5% to 2.0% in Budget 2026, committing to reach 1% in 2028, and creating a red tape reduction office.
“Small business owners saw real progress this spring, and now they want to see it carried through,” added Galgay. “This fall sitting is when commitments need to become legislation. The red tape reduction office, regulatory counting and annual reporting should be written into law, so they outlast any one government.”
Key priorities for the fall sitting:
-
Red tape legislation: reinstate and strengthen the Regulatory Accountability and Reporting Act, with regulatory counting, annual public reporting and no sunset clause. Newfoundland and Labrador has received an ‘F’ on CFIB’s Red Tape Report Card every year since 2021.
-
Insurance tax relief: Permanently eliminate the 15% retail sales tax on all insurance premiums paid by small businesses.
-
Construction mitigation: Amend the Towns and Local Service Districts Act and City Act(s)to allow municipalities to compensate small businesses affected by prolonged public construction projects.
For media enquiries or interviews, please contact:
Jonathan Galgay, Director of Legislative Affairs, Newfoundland and Labrador
Canadian Federation of Independent Business
C: 709-743-6069
jonathan.galgay@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region, including 1,700 in Newfoundland and Labrador. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
Print Article
Share Article