Higher sales tax and lower income tax coming soon to Quebec

Higher sales tax and lower income tax coming soon to Quebec

Quebec City (Quebec) 7 September 2015 – In keeping with the provincial government’s austerity program the Finance Minister, Carlos Leitao has announced that he will be following a recommendation proposed by a special committee on the fiscal status of the province. The committee, headed by Luc Godbout, recommends that the finance minister lower the income tax for most of the population but, at the same time raise the provincial sales tax by approximately 1%.

The Minister hopes to start by lowering the income tax and then follow-up next year by raising the sales tax. The new sales tax will be at 11% as compared to the actual 9.975% bringing the total combined sales tax for the Quebec consumer, when added to the Federal sales tax, to 16%.

M. Laitao says the changes will be gradual but, that most citizens will benefit overall from the difference on their income tax. The surcharge for the health contribution is to be abolished and the personal base allowance will go from $14,281 to about $18,000.

Squeezed in between the new sales tax and proposed income tax reduction will be an increase in the cost of electricity.

Still the minister reiterates that the changes will be beneficial for all Quebecers, and for the province as a whole.

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