British Columbia Finance Minister Kevin Falcon delivered the province’s 2012 budget without any proposed changes to personal income tax rates.
The budget proposed changes to the basic personal amount and Medical Services Plan (MSP) premiums.
Basic personal amount to decrease
The budget proposes to decrease the basic personal amount claimed on a British Columbia Personal Tax Credits Return (TD1BC) as a result of the elimination of the harmonized sales tax (HST) on April 1, 2013.
The government increased the basic personal amount from $9,373 in 2009 to $11,000 in 2010 as part of a switch from the goods and services tax (GST) and provincial sales tax (PST) to the HST. Last year provincial residents voted in a referendum to eliminate the HST and return to the GST and PST.
With the elimination of the HST next year, the government proposes to return to the 2009 amount of $9,373, plus any increases due to indexing that would have occurred since then.
For 2013, the government proposes the basic personal amount be set at what it calls a “blended amount” to take into account the higher basic personal amount will apply from Jan. 1, 2013 to March 31, 2013 while the HST is in effect and the lower amount that will apply once the HST is replaced by the GST and PST.
Budget documents note that the exact amount for 2013 will be announced later this year.
MSP premiums rising
The budget proposes to increase the premium rates for the Medical Services Plan (MSP), effective Jan. 1, 2013. Budget documents indicate that premiums for a single person would rise from $64 per month to $66.50. The maximum premium for a family of two would increase from $116 per month to $120.50 and for a family of three or more it would increase from $128 per month to $133.
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