Highlights from the 2017 BC Budget

This week we thought we’d bring you some highlights from the latest BC budget. While none of these effect personal taxation, there are some notable items.

  • Starting January 1st, 2018, MSP premiums will be reduced by half for families with annual net income of up to $120,000. The BC government has also indicated it plans to eliminate MSP premiums entirely (at some indefinite point in the future)
  • The small business corporate tax rate will be reduced to 2% from 2.5%
  • PST on electricity will be eliminated for businesses over 2 years. Started October 1, 2017, the rate will decrease to 3.5%, and by April 2019 it will be gone entirely. This exemption will also apply to municipalities, hospitals, and schools
  • The interest rate on student loans will be reduced from prime + 2.5% to just prime, starting August 2017
  • The maximum threshold for first-time home buyers will be increased, from $475,000 to $500,000

There are a number of other items which deal with funding for the various government programs, such as education, child welfare, and daycare spaces. For more information, Click Here.

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