05/11/2012 07:07 EDT | Updated 07/11/2012 05:12 EDT

New Brunswick government to increase tax on financial institutions

FREDERICTON - The New Brunswick government says increasing a tax on financial institutions by one per cent would generate an estimated $5 million annually.

The legislation introduced Friday would increase the province's financial corporation capital tax from three per cent to four per cent.

Finance Minister Blaine Higgs says the measure would help reduce New Brunswick's multimillion-dollar deficit.

The increase would bring the province's tax rate in line with Nova Scotia's rate, which is four per cent.