Amendments introduced to reduce provincial personal income tax due to carbon tax revenue11 May 2021
FREDERICTON (GNB) – Amendments to the Income Tax Act were introduced today that would reduce the provincial personal income tax rate on the first tax bracket from 9.68 per cent to 9.4 per cent and increase the Low-Income Tax Reduction (LITR) threshold from $17,630 to $17,840 for the 2021 taxation year.
“This benefit is part of our commitment to recycle the $163 million in revenue generated from the carbon tax back into the economy and into climate change initiatives,” said Finance and Treasury Board Minister Ernie Steeves. “The amendments introduced today would put $28 million back into the pockets of New Brunswickers, providing an annual benefit to over 420,000 taxpayers.”
The $163 million in carbon tax revenue for 2021-22 will be distributed as follows:
- $78 million will be returned to taxpayers through the April 2020 reduction in gasoline and diesel taxes;
- $36 million will be allotted to the Climate Change Fund and climate initiatives;
- $12 million will go towards the natural gas distribution offset established last year;
- $9 million will be provided to First Nations; and
- $28 million will be returned to New Brunswickers through a reduction in personal income tax.
The proposed savings would begin on July 1 and be fully reflected when New Brunswickers file their 2021 tax returns in the spring of 2022.
“Our plan reflects our commitment to create vibrant and sustainable communities while at the same time taking action to protect our environment,” said Steeves.11-05-21