Carney administration advances more in pursuing declared tax reductions.
In Ottawa, the Carney government has set forth its initial steps towards the income tax reductions pledged during the election campaign. On Tuesday, Finance Minister François-Philippe Champagne presented the preliminary stages to enact this promise, via a ways and means motion.
Specifically, the Liberals aim to bring down the personal income tax rate for the initial bracket from 15% to 14%, effective July 1st. This move is predicted to save some families up to $840 annually.
The Ministry of Finance's statement reveals that this motion will also help fulfill a separate commitment made during the campaign, concerning access to homeownership. The government plans to eliminate the Goods and Services Tax (GST) on the acquisition of a new primary residence valued at $1 million or below. The GST would also be reduced for a primary residence valued between $1 million and $1.5 million.
Furthermore, the motion plans to remove carbon pricing for consumers, often referred to as the "carbon tax," from legislation. While this measure had been previously abolished in the spring through an order-in-council, it remains enshrined in law.
Following the passage of the ways and means motion, the adoption of a bill will follow, securing these measures.
The Speech from the Throne, read by King Charles III at the Senate on Tuesday, mentioned the tax cut and tax relief for first-time homebuyers. This represents the first time such mention has occurred in 48 years.
Prime Minister Carney has repeatedly emphasized the importance of lowering middle-class citizens' tax burden. At the first meeting of his cabinet following the recent elections, the Prime Minister signed a document outlining this commitment, witnessed by cameras.
His team has stated that this document instructs the Minister of Finance and National Revenue to introduce a bill on the fiscal measure as soon as Parliament resumes. To secure the necessary votes, given the government’s minority status, the adoption of a bill will depend on support from opposition parties.
- The French Finance Minister, François-Philippe Champagne, announced plans to lower the personal income tax rate for the initial bracket from 15% to 14% in the Carney government's policy-and-legislation, a move that is expected to save some families up to $840 annually, as part of the general-news regarding income tax reductions.
- The Carney government's policy-and-legislation also includes the improvement of access to homeownership, as it aims to eliminate the Goods and Services Tax (GST) on the acquisition of a new primary residence valued at $1 million or below, and reduce the GST for a primary residence valued between $1 million and $1.5 million. This is a response to a commitment made during the election campaign and follows from the Speech from the Throne read by King Charles III, mentioning the tax cut and tax relief for first-time homebuyers.
