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NEWS RELEASE
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For Immediate Release June 28, 2010 |
Ministry of Finance
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OVER 1 MILLION TO BENEFIT FROM B.C. HST CREDIT
VICTORIA – As the HST comes into effect on July l, about 1.1 million British Columbians will start receiving the new quarterly B.C. HST credit, Finance Minister Colin Hansen announced today.
“We recognize people will pay more under HST for some goods and services, and the B.C. HST credit ensures that people with low and modest incomes will get help with these costs,” said Hansen.
British Columbians with incomes up to $20,000 will receive an annual HST credit up to $230. Families with incomes up to $25,000 will receive an annual B.C. HST credit up to $230 per family member. The first cheques will be distributed the week of July 5, 2010. The B.C. HST credit will be in addition to the GST credit of up to $381 and the $105-per-adult B.C. Low Income Climate Action Tax Credit that those with low and modest incomes now receive.
To further reduce the tax burden for B.C. families, effective Jan. 1, 2010, the basic personal tax credit was increased to $11,000, an increase of $1,627 from 2009 that puts $80 back in the pockets of individuals and up to $160 for those claiming spousal credits.
The introduction of the HST follows numerous tax cuts since 2001. As a result, B.C. has the lowest provincial personal income taxes in Canada for those earning up to $118,000. For example a family of four with an income of $30,000 has over $700 more in their pocket this year from income tax cuts alone.
The HST system includes other measures to help minimize the impact on consumers. For example:
· Consumers won’t pay HST on any goods or services that don’t have GST now, including basic groceries, residential rent, prescription drugs and most health, medical and dental services – to name just a few.
· Consumers won’t pay the seven-per cent provincial part of the HST on motor fuels, books, children-sized clothing and footwear, children’s car seats and car booster seats, children’s diapers and feminine hygiene products.
· Purchasers of newly built homes will be eligible for a rebate up to $26,250 through a provincial new housing rebate. There will be no HST on used residential housing.
· Consumers will not pay any more to heat or power their homes because of a new provincial credit for residential energy, equal to the seven-per cent provincial portion of the HST.
“The B.C. HST credit ensures low- and modest-income British Columbians are protected from the additional costs of HST, even as they stand to benefit from the jobs and higher incomes that come with a stronger, more productive economy,” said Hansen. “The B.C. HST credit will be added to the tax cuts we’ve made since 2001 and give low-income British Columbians a helping hand with the taxes they pay.”
For more information on the B.C. HST, visit www.gov.bc.ca/hst.
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A backgrounder follows.
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Media Contact:
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Sarah Harrison Communications Director Ministry of Finance 250 356-2821 |
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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.
BACKGROUNDER
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For Immediate Release June 28, 2010 |
Ministry of Finance
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COMPARISON OF PERSONAL INCOME TAX PAID BETWEEN 2001 AND 2010
Two Income Family of Four earning $90,000
2001 Personal Income Tax $5,477
2010 Personal Income Tax $3,205
Net Change in Tax $2,272 less in 2010
B.C. HST Credit N/A
Total Benefit $2,272
Two Income Family of Four earning $60,000
2001 Personal Income Tax $2,952
2010 Personal Income Tax $1,330
Net Change in Tax $1,622 less in 2010
B.C. HST Credit N/A
Total Benefit $1,622
Two Income Family of Four earning $30,000
2001 Personal Income Tax $ 716
2010 Personal Income Tax $ 0
Net Change in Tax $ 716 less in 2010
B.C. HST Credit $ 762
Total Benefit $1,478
Single Individual earning $25,000
2001 Personal Income Tax $1,077
2010 Personal Income Tax $ 380
Net Change in Tax $ 697 less in 2010
B.C. HST Credit $ 84
Total Benefit $ 781
Unattached Individual earning $80,000
2001 Personal Income Tax $6,578
2010 Personal Income Tax $4,082
Net Change in Tax $2,496 less in 2010
B.C. HST Credit $ N/A
Total Benefit $2,496
Senior Couple with Equal Pension Incomes $30,000
2001 Personal Income Tax $ 90
2010 Personal Income Tax $ 0
Net Change in Tax $ 90 less in 2010
B.C. HST Credit $ 260
Total Benefit $ 350
The maximum annual credit is $230 per family member for families with incomes up to $25,000 and individuals with incomes up to $20,000.
Individuals and families with incomes above these thresholds are eligible for a partial benefit. A family of four with an income between $25,000 and $48,000, and individuals with incomes up to $25,750, will receive a partial credit.
· For single individuals with no children, the credit is reduced by four per cent of their net income over $20,000.
· For families, the credit is reduced by four per cent of their net income over $25,000.
For more information on the B.C. HST, visit www.gov.bc.ca/hst.
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Media Contact:
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Sarah Harrison Communications Director Ministry of Finance 250 356-2821 |
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.
