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.