BRITISH COLUMBIA TAX CUTS SINCE 2001

Key Tax Highlights

· Tax measures: Since 2001, B.C. has implemented considerable tax reduction measures to leave more money in people’s pockets and restore B.C.’s economic competitiveness.

· Income tax reduction: Since 2001, B.C. has made significant cuts to personal income tax, with most people receiving reductions of over 35 per cent.

· Interprovincial ranking: In 2009, B.C. will have the lowest personal income tax burden for individual taxpayers in Canada on income up to about $111,000 and the second-lowest top marginal rate.

· Business tax: Since 2001, B.C. has eliminated the general corporation capital tax and reduced the corporate income tax rate by one-third to give B.C. one of the most competitive tax regimes in the country.

The B.C. government has made big cuts in personal income tax rates.

· 2001 – B.C. income tax reduced by 25 per cent.

· 2005 – BC Tax Reduction, a non-refundable personal income tax credit, reduced or eliminated taxes for 730,000 people.

· 2007 – 10 per cent tax cut on income up to $100,000.

· 2008 – Two per cent tax cut, rising to five per cent by 2009, on income up to $70,000.

· Taxes have been eliminated for 250,000 British Columbians.

· With the most recent tax cut of five per cent, B.C. will have the lowest personal income tax burden in Canada on earnings up to $111,000.

· B.C. has the second-lowest top marginal income tax rate in Canada.

B.C. has one of the most competitive business tax regimes in Canada.

· Effective July 1, 2008, B.C.’s corporate income tax rate will be 11 per cent, the second lowest tax rate in the country, with further reductions planned to 10 per cent by 2011.

· Since 2001, the general corporate income tax rate has been reduced by 33 per cent.

· Effective July 1, 2008, B.C.’s small business tax rate is reduced to 3.5 per cent, the fourth-lowest rate in the country, with planned reductions to 2.5 per cent by 2011.

· Small business income threshold increased to $300,000 in 2002 and then further increased to $400,000 in 2005.

· B.C.’s business taxes are among the most competitive among its major trading partners.

· In 2001, the Province eliminated the provincial sales tax on production machinery and equipment.

· In 2001, B.C. eliminated its corporation capital tax on non-financial corporations and, as announced in Budget 2008, the tax will be phased out for financial institutions by 2010.

-30-


Media contact:	Finance Communications Public Affairs Bureau 250 387-5013

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.