Colin Hansen: HST comes with new tax credit and income tax relief
The following is an unsolicited letter on the HST from B.C. finance minister Colin Hansen that was sent to the Georgia Straight:
May 28, 2010
We know introducing the Harmonized Sales Tax on July 1 will benefit B.C.’s economy and, at the same time, we recognize there will be additional tax on some products and services.
That’s why we’re providing a B.C. HST Credit that will be paid quarterly to over 1.1 million low- and modest-income British Columbians. The annual credit will be $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 may be eligible for a partial benefit, for example, a family of four with income between $25,000 and $48,000 will receive a partial credit. Eligible British Columbians will receive the first HST credit payment in early July, along with the BC Low Income Climate Action Tax Credit and the GST credit.
We are also providing income tax relief by increasing the basic personal amount tax credit to $11,000. This means up to $80 back in the pockets of individuals and up to $160 for those claiming spousal credits. People earning up to $18,800 generally pay no provincial personal income tax. British Columbia has the lowest provincial income taxes in Canada for individuals earning up to $118,000.
For more information, please visit www.gov.bc.ca/hst
Minister of Finance and Deputy Premier