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VICTORIA
– The government of British Columbia
has tabled a Supplementary Estimate to provide $450 million for the Climate
Action Dividend, Finance Minister Carole Taylor announced today.
Subject
to approval by the Legislative Assembly, the Supplementary Estimate would
provide $440 million for a $100 Climate Action Dividend payment to each British
Columbia adult and child and $10 million to fund administrative and outreach
costs associated with making the payments.
“One
of the many initiatives announced in Budget 2008 is to provide British Columbia
residents with a one-time, $100 Climate Action Dividend to encourage the
transition to a greener lifestyle,” said Taylor. “It is government’s hope that
British Columbians will use these funds in ways than can help reduce their
greenhouse gas emissions before the carbon tax begins in July.”
The
Climate Action Dividend is funded from the 2007/08 surplus, an opportunity
generated by British Columbia’s strong economic performance in 2007. Provided
the Supplementary Estimate is approved by March 31, 2008, payments will be
mailed out to British Columbians in June 2008, based on information from 2007
income tax returns.
“The
Climate Action Dividend marks the beginning of a new approach that encourages
environmentally responsible choices while strengthening our economy,” said
Taylor. “By reducing their impact on the environment, British Columbians can
enjoy further benefits from the ongoing tax reductions we announced in last
week’s budget.”
The
Climate Action Dividend is separate from and in addition to the $1.8-billion
tax reductions made possible by the revenue-neutral carbon tax. These tax
measures include:
·
The bottom two personal
income tax rates will be reduced for all British Columbians, resulting in a tax
cut of two per cent in 2008, rising to five per cent in 2009 on the first
$70,000 in earnings – with further reductions expected in 2010 ($784 million
over three years);
·
Beginning July 1, 2008
the new Climate Action Credit will
provide lower-income British Columbians with an annual payment of $100 per
adult and $30 per child per year – increasing by five per cent in 2009 and
possibly more in future years ($395 million over three years);
·
Effective July 1, 2008,
the small business tax rate will be reduced to 3.5 per cent from 4.5 per cent –
with further reductions planned to 2.5 per cent by 2011 ($255 million over
three years); and
·
Effective July 1, 2008,
the general corporate income tax rate will be reduced to 11 per cent from 12
per cent – with further reductions planned to 10 per cent by 2011 ($415 million
over three years).
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Public Affairs Bureau 250 387-5013 |
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