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BC Oct 2008 Economic Plan

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British Columbia -> October 2008 Economic plan

British Columbia Economic Plan - October 22, 2008

Personal income tax rates

The two lowest provincial personal income tax rates are being reduced retroactively for 2008, using the reduction that was scheduled to take effect January 1, 2009.  The following table shows the proposed rate changes.

Taxable Income 2008
Current
Rates
Proposed Rates
2008 2009
first $35,016 5.24% 5.06% 5.06%
over $35,016 up to $70,033 7.98% 7.70% 7.70%
over $70,033 up to $80,406 10.50% 10.50% 10.50%
over $80,406 up to $97,636 12.29% 12.29% 12.29%
over $97,636 14.70% 14.70% 14.70%

The marginal tax rate tables and the tables of non-refundable personal tax credits have been revised to include the above tax rate reductions for 2008.  The Canadian tax calculator has also been revised to include these rate reductions.

 

Small business corporate income tax rates

The small business income tax rates will be reduced effective December 1, 2008, to 2.5% from the current 3.5%.  The rate was previously reduced from 4.5% to 3.5% effective July 1, 2008.

 

Property taxes

School property tax rebate for industry

50% of all school property taxes will be rebated to light and heavy industry.

 

Provincial sales taxes (PST) and hotel room tax (HRT)

Commission paid to business for collection of these taxes will be doubled.

 

Ferry fares

The Province will fund a 33% reduction of ferry fares on all routes for December 2008 and January 2009.  In addition, ferry service levels for all routes, including the Sunshine Coast, will be restored.

 

Credit union deposit insurance

Effective immediately, the province will provide unlimited deposit insurance protection for deposits in BC's credit unions.  These deposits were previously insured up to $100,000.

 

Private sector pension plan

The province will create a new private sector defined contribution group pension plan.  The plan will be available on a voluntary basis to employers, employees and self-employed people.

 

All of the tax changes are subject to legislative approval.  The legislature will be recalled on November 20, 2008.

See the BC Government October 22, 2008 news release.

 

Revised: September 19, 2017

 

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