Collection for deficit reduction levy starts in July, says Cathy Bennett

The details surrounding the controversial deficit reduction levy added to this year's provincial budget are becoming a little less mysterious.

Finance Minister Cathy Bennett shared more information on how the levy will be paid at the House of Assembly in St. John's on Tuesday.

The levy will tax Newfoundlanders and Labradorians a set amount, depending on how much their income is each year, and will be paid in a similar way as income tax, said Bennett. 

In other words, if tax comes off your paycheque, the amount deducted will be a bit more starting this summer. 

"As of July 1, those new tax tables will be in place and the actual tax payable is part of this tax year," said Bennett.

"It will be 50% of the amounts that had been communicated will be collected this year, because it's only a half a tax year."

That means that people who are expected to pay $750 per year as per the levy, will have to pay $375 in 2016.

"The majority of people who will be paying the levy, almost half of those will be paying a dollar a day," she said.  

Despite the criticism the levy has received, Bennett said the government will not back down.

"This levy in conjunction with the personal income tax is collecting money that the province needs right now," she said.