Tuesday, February 21, 2012

BC Budget 2012 Highlights

Here is a great list of highlights i came across from the board of trade.

B.C. Budget 2012 Highlights
for Business Owners & Managers
The B.C. Government forecasts British Columbia's economy will grow by 1.8 per cent in 2012, 2.2 per cent in 2013 and 2.5 per cent per cent in 2014. The government stated that the forecast is prudently based on the independent British Columbia Economic Forecast Council.
B.C. Budget 2012 also supports Premier Christy Clark's B.C. Jobs Plan with tax measures for businesses that:
• Eliminate the provincial jet fuel tax for international flights.
• Provide an additional $3 million for the Small Business Venture Capital Program.
• Extend the Training Tax Credit program.
• Introduce new training tax credits for shipbuilding and ship repair industry employers.
• Make permanent the existing temporary municipal tax rate caps for B.C.'s major port terminals.
The B.C. Government plans to balance its budget in 2013-14. The Province forecasts a deficit of $968 million in 2012-13, and surpluses of $154 million in 2013-14 and $250 million in 2014-5. B.C. Budget 2012 restricts overall annual government growth to 2 per cent a year for the next 3 years. However, healthcare spending will increase 3 per cent annually.
The B.C. Government stated that due to the uncertain fiscal environment, the small business corporate tax rate will be maintained at 2.5 per cent and will be revisited after the fiscal situation has improved. The B.C. Government had previously planned to reduce it.
The B.C. Government's new fiscal plan also includes a temporary one-point increase in the general corporate income tax rate to 11 per cent, effective April 1, 2014. This provisional increase will be dependent upon economic growth. The requirement to implement this tax measure will be re-evaluated in next year's budget.
The B.C. Government offered no new information on HST/PST transition or its vision for a competitive Sales Tax Regime in B.C. Budget 2012.
The B.C. Government announced that no additional carbon tax increases are scheduled after July 1, 2012. The Finance Minister, Kevin Falcon, also announced that over the next year, the government will undertake a comprehensive review of the revenue-neutral carbon tax. The review will cover all aspects of the carbon tax — both positive and negative — including revenue neutrality, and it will consider the impact on the competitiveness of B.C. businesses, and in particular B.C. food producers. The Minister committed that the results will be acted upon in the 2013 budget.
B.C. Budget 2012 introduces new tax measures that benefit seniors, families and businesses, including:
• The B.C. First-Time New Home Buyers' Bonus of up to $10,000.
• The B.C. Seniors' Home Renovation Tax Credit of up to $1,000.
• The Children's Fitness Credit and the Children's Arts Credit.
Additionally, to help spur economic activity throughout the province and generate needed revenue, the B.C. Government announced in B.C. Budget 2012 that it will release non-strategic surplus assets for sale.
The Vancouver Board of Trade's Government and Finance Committee rated B.C. Budget 2012 with a 'B' Grade. For more information visit www.boardoftrade.com

No comments: