HST Relief on Home Energy, Family Essentials Made Law
April 18, 2013
Nova Scotians will continue to see the benefits of no provincial portion of the HST on home energy and other essential items with proposed changes to the Financial Measures (2013) Act.
The Financial Measures (2013) Act, introduced today, April 18, will require a provincial referendum, and the approval of the majority of Nova Scotians, before the provincial portion of the HST can be added back to:
— home energy
— children’s diapers
— children’s clothing
— children’s footwear
— feminine hygiene products
— first-time home purchases
— new vehicles for the physiologically impaired
— computers for the visually and hearing impaired, and mentally and physically challenged
— firefighting equipment used by municipalities and volunteer fire departments
“We’ve heard from Nova Scotians that not having to pay the provincial portion of the HST on basic electricity and home energy helps make life a bit more affordable for families, and we want to protect this into the future,” said Finance Minister Maureen MacDonald. “A referendum will ensure they have a direct say in any action that could alter or eliminate these HST exemptions.”
The Financial Measures (2013) Act also puts into law other budget measures designed to foster small business growth and jobs, and provide tax relief to low-income seniors.
The number of low-income seniors who will get provincial income tax relief will increase to 29,000, from 17,000, as part of the new provincial Age Amount Tax Credit.
For the fourth year in a row, the rate of corporate income tax for small business will be reduced by 0.5 per cent to three per cent, while the threshold is lowered to $350,000 as of Jan. 1, 2014.
The Corporation Capital Tax Act will be updated to clarify language for taxable capital and repayments of interest on overpayments of corporate capital tax.
The Nova Scotia Government Retired Employees Association will gain the right to choose a member of the trustee board of the Public Service Superannuation Plan.
Provincial user-fee adjustments, implemented April 1, will also be included in the act, as will the increase in tobacco tax that came into effect April 5.
The Financial Measures (2013) Act provides legislative authority for budget measures and is a routine part of the budget process.
A fact sheet on the Financial Measures (2013) Act can be found on the Department of Finance’s websitewww.novascotia.ca/finance/en/home/budget/fma.aspx.
For more information on Budget 2013 and how it makes life better for families in Nova Scotia, visit www.novascotia.ca.