Report D: REVENUE MEASURES

TABLE D1
SUMMARY OF BUDGET 98 TAX REDUCTIONS

	Revenue Cost ($ millions) 1998/99
Personal Income Tax
Reduce the British Columbia personal income tax rate by one percentage point to 49.5 per cent of federal tax, effective January 1, 1999	25
Reduce the top marginal rate by 1.5 percentage points to 52.7 per cent effective January 1, 1999	12
Medical Services Plan premium assistance enhanced	7
Corporation Capital Tax (CCT)
Increase the CCT threshold to $2.5 million from $1.5 million effective January 1, 1999	5
Corporate Income Tax
Reduce the small business tax rate to 8.5 per cent from 9 per cent, effective January 1, 1999	3
Film Incentive BC refundable income tax credit introduced	7
Provincial Sales Tax
Exempt 1-800 and equivalent services and introduce selected exemptions to assist the hi-tech sector	7
Provincial Fuel Tax
Reduce the international jet fuel tax rate by 1 cent per litre to 3 cents per litre effective April 1, 1998	6
Exempt bona fide farmers from the coloured fuel tax, effective June 1, 1998	3
Other Initiatives under development	20
TOTAL	95

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