British Columbia Budget '98

A plan to make B.C. more
competitive, attract
investment and create jobs

Meeting the challenge


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



Ministry of Finance and Corporate Relations
Communications Branch
109 – 617 Government Street, Victoria, B.C.
V8V 1X4
Fax: (250) 356-2822


Tax and Rate Freezes at a Glance

Tax Cuts and Rate Freezes
Family Income Single Parent
Two Young
Two Parent
Two Children
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
$ (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
  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


F&CR BC Ministry of Finance and Corporate Relations

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