HST credit offered to low, middle-income families
Finance Minister Roger Melanson says HST credit for low- and middle-income families will cost $100M
The Liberals are ushering in a tax credit in order to soften the impact of the planned HST hike on New Brunswick's low- and middle-income families.
Finance Minister Roger Melason's budget on Tuesday promised to increase the HST by two percentage points by July 1, 2016. This move will cause roughly $300 million to flow into the province's coffers.
But the finance minister said some families will be able to qualify for a refundable tax credit.
The tax credit could hand back $300 to individuals, $300 for a spouse or partner, and $100 per child under the age of 19. Single parent families can also receive a $300 credit for their first child under this new system.
The full credit will be given to a family with an income of less than $35,000 and the credit will be reduced by two cents for every dollar of income over $35,000.
"This credit is designed to protect low-to-middle income households and will return approximately $100 million to New Brunswickers," Melanson's budget said.