NB 1293
Dec. 27, 2002
FREDERICTON (CNB) -- Effective Jan. 1, 2003, New Brunswickers will benefit from lower income taxes for people and businesses.
"We have lowered personal and corporate income taxes each and every year since 1999," Finance Minister Peter Mesheau said. "Lowering income taxes for people and businesses will result in additional savings to New Brunswickers and businesses and will strengthen the prosperity in New Brunswick."
New Brunswickers will benefit from provincial personal income tax savings of $130 million in 2003-2004. It means a one wage-earner family with income of $25,000 will now pay $519 less in New Brunswick personal income taxes in 2003 than in 1999, a reduction of over 47 per cent from the 1999 level. Cumulative provincial personal income tax savings total $360 million over the 2000-2001 to 2003-2004 period.
Effective for the 2003 taxation year, New Brunswick's Low-Income Tax Reduction will also be enhanced so that all single tax filers with income up to $12,500 will no longer pay provincial personal income tax. As a result, New Brunswickers who earn income from a full-time job at the current minimum wage and families earning up to $20,000 will no longer pay any provincial income tax.
To remove barriers to work, the government will remove a further 15,000 tax filers from paying provincial income tax for the 2003 taxation year and beyond. In total, more than 40,000 New Brunswickers will not have to pay any provincial personal income tax in 2003 compared to the 1999 tax structure. The New Brunswick tax-free income level has increased from $6,794 in 1999 to $12,500 in 2003, an increase of 84 per cent. With this measure, New Brunswick's tax-free income level is now second only to Alberta.
"New Brunswick's small businesses are the backbone of our economy," the minister said. "It makes sense to reduce their tax burden to help create and protect jobs."
That is why the small business corporate income tax rate will be reduced to three per cent on January 1, 2003. It will continue to be the lowest rate in Canada. The income threshold eligible for the small business corporate income tax rate will be increased to $400,000.
New Brunswick's general corporate income tax rate will also be reduced on Jan. 1, 2003, from 14.5 per cent to 13 per cent. It represents the third lowest rate in Canada. New Brunswick businesses will realize savings of $65 million in corporate income taxes in 2003-2004, and will benefit from cumulative savings of an estimated $122 million over the four year period.
More information on personal and corporate income tax is available to the public online at http://www.gnb.ca/0162/tax/Personal.htm or http://www.gnb.ca/0162/tax/Corporate.htm
02/12/27
MEDIA CONTACT : Vicky Deschênes, communications, Finance, 506- 453-2451.
02/12/27