B.C.’s small business income tax rate has been reduced from 2.5 per cent to two, and the change is being made retroactive to April 1, 2017.
Both the NDP and the B.C. Liberals promised the tax would be reduced that amount, with the B.C. Liberals promising to make it retroactive. In last spring’s election campaign, the NDP promised only to cut the tax by half a point, and to raise the large corporate income tax from 11 to 12 per cent at the start of the new fiscal year, April 1, 2018.
The NDP government is also carrying out the B.C. Liberal promise to remove provincial sales tax from business electricity bills. Half of that tax came off this fall and Finance Minister Carole James said the rest is to be removed in April 2019. PST is not charged on residential B.C. Hydro bills.
In her budget update in September, James announced the return of a high-income personal income tax bracket. Effective April 1, 2018, personal income tax goes up two per cent on income over $150,000 a year, restoring an increase put in place by the B.C. Liberals before the 2013 election and removed two years later.
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Don Quixote Note:
When I inquired from the Minister of Finance office about the effective date of te reduction of PST the answer I got is that they will be announcing the effective date with a 1 month notice. The fall implementation date mentioned in the story above appars to be in error.
The Budget 2017 Update announced that the PST rate on electricity will be reduced to 3.5 per cent from the current 7 per cent at a date to be specified by regulation, and then eliminated completely on April 1, 2019. Government intends to provide at least one month of notice before the 3.5 per cent rate takes effect.
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