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Your B.C. Government

Your B.C. Government’s Response to Economic Crisis

The global economy is facing major challenges, but British Columbia is better positioned than other jurisdictions to deal with these challenges. Our strong and prudent fiscal management over the past seven years has allowed us to take measures that provide greater certainty to B.C. families and businesses.

What your B.C. Government is doing for Economic Crisis:

  • Since February 2009, 480 projects worth $3.4 billion have been announced. The projects approved to date are expected to create 21,600 direct jobs over three years. In partnership with other levels of government, your B.C. Government’s capital construction plan could create up to 88,000 jobs. The Government's response to the economic crisis provides over $425 million in tax relief and support for B.C. families, businesses and individuals over the next three years.
  • Your B.C. Government has accelerated personal income tax reductions, with a five per cent income tax cut retroactive to January 1, 2008, which will put $144 million back in people's pockets and back into our economy.
  • The small business income tax was reduced to 2.5 per cent on December 1, 2008.  This will save B.C. businesses $401 million over three years. This additional tax cut reduces the rate from 4.5 per cent to 2.5 per cent, that's a reduction of 44 per cent.
  • Your B.C. Government intends to reduce the small business corporate income tax rate to zero by April 1, 2012.
  • On July 1, 2010 the B.C. government intends to introduce a harmonized sales tax.  At a rate of 12 per cent, B.C.’s HST will be the lowest in Canada and represents an important step toward making British Columbia one of the most competitive jurisdictions in the world.
  • The HST will lower tax on new investment by 40 per cent, creating jobs and new opportunities in every region of the province.  Proposed measures to help consumers include:
    • A provincially administered point-of-sale rebate for home energy;
    • Rebates for new-home buyers, consumers of motor fuels and other products;
    • And a HST credit to benefit more than 1.1 million low income British Columbians.
  • Government is tightening its own belt over the next three years and expects to achieve $3.4 billion in savings through reductions in advertising, discretionary grants, contracted professional services, travel costs and office expenses.
  • For the first time in 14 years, commissions paid to businesses for collecting the provincial sales tax and the hotel room tax will increase, in fact it will double. Doubling the commission will put $60 million into B.C. businesses over the next three years. More than 100,000 businesses will receive up to $1,200 annually.
  • Your B.C. Government has created a new school property tax credit that will help industries stay competitive. 50 per cent of all school property taxes will be rebated to light and heavy industry, with $155 million savings to industry over the next three years. This credit will not affect revenues for local governments.
  • The Province will increase the school property tax credit to 60 per cent for the 2011 tax year.
  • The Province is providing $420 million in additional funding to meet greater demand for income assistance as a result of the recession.
  • Your B.C. Government is providing $30 million for the RuralBC Secretariat to enhance community economic development.
  • British Columbians now have unlimited deposit insurance protection in Credit Unions.  This provides depositors with a higher level of security and makes B.C. credit unions more competitive with those in other provinces.
  • Your B.C. Government is establishing a new private-sector pension plan for British Columbians. This will mean those 75 per cent of British Columbians who are presently without pension plans will now be eligible through a privately financed, defined contribution plan made available on a voluntary basis to employees, employers and the self-employed.
  • Your B.C. Government permanently removed the tolls on the Coquihalla Highway saving travellers time and money. A passenger vehicle making a round trip twice a month will save $480 a year, and a commercial truck making a round trip once a week will save $4,800 a year.
  • Your RRSPs are now protected from seizure by creditors thanks to your B.C. Government. This shields the hard-earned investments of British Columbians no matter where their RRSPs are held.
  • Your B.C. Government is seeking federal amendments so seniors do not have to convert RRSPs at 71 years of age.
  • British Columbian homeowners have the true property value of their homes reflected in their assessment by having the lower assessment value of 2007 or 2008 automatically maintained.
  • Your B.C. Government has created a new temporary financial hardship property tax deferment program which allows families in need to defer their property taxes for two years and not pay it back until they sell their home.
  • Your B.C. Government has increased resource road funding twenty-fold to $20 million.
  • Economic summits held in Prince George and Vancouver in 2009 brought British Columbians together to identify opportunities to take advantage of the coming economic recovery.