We pick up this story up from last November, when the final act of the outgoing Liberal Finance Minister was to address the inequity between trust unit and stock taxation by increasing the tax credit mechanism for individuals owning stocks in Canadian public companies outside a sheltered portfolio. His solution stood as only a half-measure unless each and every province responded like-wise. Also, the mantle was passed to the new government to change or legislate Goodale’s solution. Presumably, this awaits the next federal budget later this Spring.
On Feb. 21st, it was the BC Finance Minister’s turn; however, she chose to defer her response, no doubt citing the work-in-progress at the federal level. So, for now, investors—and the stock market—sit and wait.
The application of PST in the computer services industry is a nightmare labyrinth. Effective Feb. 21st, the BC PST is withdrawn on labour charges related to installing, modifying, repairing or maintaining computer software.
The BC Budget issued a “clarification” that there is no PST on office equipment such as photocopy equipment purchased for office use.
The 2006 BC Budget weighed in with a small goodie for car buyers. The base level for the “luxury car” PST rate was raised by $6,000 from the present $49,000. Vehicles above this price bear a higher PST rate ranging from 1-3%.
Starting 2005, the BC government introduced a new low income credit worth up to $360 for those with net income under $16,000. The credit phases out beyond this and disappears at net income of $26,000.
The BC government has set some lofty goals to make BC residents the most educated in North America. One of their planks to achieve this is to seed $30M annually for the next three years by way of corporate tax credits to give incentives to corporations to train their employees. Details of this are still to be developed.