Amendments to the Financial Measures Act Introduced

Finance Minister Neil LeBlanc introduced legislative changes today, April 17, paving the way for specific provincial budget measures to become law.

One of the major amendments to the Financial Measures Act lowers personal income tax rates by 10 per cent. Tax relief begins on July 1, with the provision of a $155 individual taxpayer refund covering reductions from July 1 to Dec. 31. On Jan. 1, 2004, lower tax levels are reflected in lower paycheque deductions.

"Today's amendments will ensure that the reduction to personal income tax rates will take effect as planned," said Mr. LeBlanc.

The Gaming Control Act will also be amended to allow a mechanism, if required, to ensure that municipal bylaws don't compromise the government's obligations under the casino contracts that were signed in 1995.

Significant changes to the Equity Tax Credit include a three-year extension to Dec. 31, 2006, and an increase to the individual annual investment limit from $30,000 to $50,000. The credit encourages Nova Scotians to invest in small- and medium-sized corporations and co-operatives by offering a 30 per cent non- refundable provincial tax credit on qualified investments.

Other tax changes include a one-year extension to the Labour Sponsored Venture Capital tax credit, to Dec. 31, 2004. The Large Corporations Capital Tax will be extended to March 31, 2006.

The maximum family caregivers tax credit will increase from $233 to $408, an increase of up to 75 per cent

A number of administrative and compliance amendments to the Income Tax Act are included in the Financial Measures Act to ensure the intent of the legislation is being followed.