Financial Measures Act Introduced

Finance Minister Michael Baker introduced the Financial Measures Act today, March 28, to support a number of measures in the 2007-08 Nova Scotia budget.

"We are moving forward with a number of tax initiatives to make Nova Scotia more competitive and to encourage business investment, said Mr. Baker. "At the same time, we are introducing revenue measures to help fund the programs and services that Nova Scotians rely on."

The Financial Measures Act includes amendments to 21 pieces of legislation.

The Income Tax Act will be amended to implement tax breaks for volunteer firefighters, post-secondary graduates, and digital media productions as outlined in the 2007-08 provincial budget.

Amendments are also being made to the Sales Tax Act to accommodate the newly created tours and convention incentive. This credit complements a new similar federal program, and will help restore the competitive advantage to Nova Scotia's tourism industry.

Changes to the Revenue Act will be made to allow for the recently announced increases in tobacco taxes, which came into effect March 24.

A number of laws will be amended to implement changes to legislated fees and government charges as announced in the budget, such as those pertaining to re-instatement of driver licences, personal property, trust and loan companies, and probate.

The 2007 Financial Measures Act also includes amendments to the Securities Act and Liquor Control Act to clarify that fees charged are intended to be licence fees to raise revenue for the province.

Measures are also being introduced to ensure all four political parties -- Progressive Conservative, Liberal, New Democratic and the Green parties -- are treated fairly and equitably as it relates to public financing.

Other revisions in this year's Financial Measures Act include:

• the public service pension plan rate increase
• measures so that all seasonal business operators can qualify for a special tax rate
• a tax reduction for the incorporation of an unlimited company
• an increase to the Labour Sponsored Venture Capital credit.

The act also contains housekeeping changes to various pieces of legislation.