Budget ’98 presents a three-year plan to stimulate the
economy,
make B.C. more competitive, attract investment
and create new jobs.
Cutting taxes to stimulate investment and
support small business
- Small business corporate income tax cut 11% over two years for 40,000
businesses
- Corporation capital tax eliminated for 10,000 small businesses
- Marginal income tax rate cut from 54.2% to 49.9% over three years
- Financial incentives for domestic and foreign film production
- 50% reduction in international jet fuel tax over two years
Cutting red tape
- A Small Business Task Force to cut red tape
- Legislation will eliminate duplication and simplify approvals
- Streamlining regulation in resource industries
- Business Advocate to streamline regulation
More spending power for individuals and
families
- B.C. personal income tax rates reduced by two per cent -- every taxpayer
benefits
- Medical Services Plan premium lowered for 80,000 British Columbians
- ICBC premiums and university tuition fees stay frozen
- BC Family Bonus continues for 230,000 families
- BC Hydro rebate of 2% on last year's bills and rate freeze extended
Improving health care and education and
helping families
- $228 million increase in health care budget
- $100 million for 400 new teachers and 300 librarians, counsellors and
aides
- $64 million more for Ministry of Children and Families to help children
most at risk
New opportunities for youth
- Tuition freeze continues for 150,000 B.C. students
- $40 million to add 2,900 new spaces at colleges and universities and
to boost student financial assistance
- $36 million to provide employment opportunities for 17,000 young people
Boosting the economy
- $1.25 billion this year for new schools, hospitals, roads and transportation
projects -- an increase of $275 million
Cutting industry costs
- Forestry -- substantial cost reductions from stumpage and regulatory
changes
- Oil and gas -- new incentives to increase production
- Mining -- streamlined permitting; new exploration code; greater certainty
of access to exploration land
- Farm fuel tax eliminated
Deficit reduced
- Projected deficit of $95 million half last year's deficit and the lowest
this decade
- $278 million cut from other program areas and government administrative
overheads
- Balanced budget projected for 1999/2000
FOR MORE INFORMATION, CONTACT:
Ministry of Finance and Corporate Relations
Communications Branch
109 – 617 Government Street, Victoria, B.C.
V8V 1X4
Fax: (250) 356-2822
INTERNET: http://www.fin.gov.bc.ca |
Tax and Rate Freezes at a Glance
Tax Cuts and Rate Freezes
1995-98
| Family Income |
Single Parent
Two Young
Children
$30,000 |
Two Parent
Two Children
$55,000 |
| Income Tax Cuts |
81 |
407 |
| Family Bonus |
856 |
-- |
| Medical Services Plan Assistance |
173 |
-- |
| ICBC Rate Freeze |
70 |
70 |
| B.C. Hydro Rate Freeze |
20 |
20 |
| University/College Tuition Freeze |
-- |
552 |
| Total Saving Per Year |
$1,200 |
$1,049 |
Tax Reductions Announced in Budget '98
| |
Amount
$ (millions) |
| Personal Income Tax |
| |
Reduce personal income tax rate by 2% to 49.5% in 1999 effective January
1, 1999 and reduce the top marginal rate from 54.2% to 49.9% over three
years |
266 |
| Small Business |
| |
Increase the capital tax exemption from
$1.5 million to $5.0 million over three years |
46 |
| |
Reduce the small business tax rate from 9% to 8% over two years |
20 |
| Other Reductions |
| |
Film, farming, mining, oil and gas, aviation and telecommunication |
83 |
| |
Total |
$415 |
|
