An increase in the harmonized sales tax by 2 percentage points was unveiled in the provincial budget today, April 6th. Finance Minister Graham Steele says this is the first year of a four year fiscal plan to return to a balanced budget. Among the Nova Scotia budget highlights:
_ Total spending for 2010-2011 forecast at $9.0 billion with a $222 million deficit, less than half as big as this year's deficit.
_ Harmonized sales tax to rise by two percentage points to 15 per cent as of July 1, generating $215 million in revenue this fiscal year.Other measures will see the province remove the provincial portion of the H-S-T on children's clothing and footwear through a new point-of-sale rebate.
_ To offset the tax increase, rebates will be offered to households earning less than $30,000 annually, amounting to about $240 per household.
Meanwhile, the 18-thousand seniors who receive the Guaranteed Income Supplement will no longer have to pay any provincial income tax. That measure is expected to save the province's seniors about 12.5 million dollars.
_ No increases to corporate or personal income taxes, which are already the highest in Canada.
_ Those earning more than $150,000 annually will be subject to a new tax bracket that will claim 21 per cent of earnings over that amount.
_ The NDP government will also eliminate 1,000 jobs from the public service over the next four years through attrition, while imposing wage restraints and a pension earnings cap on those who remain.
Complete budget details are available at the Department of Finance website at www.gov.ns.ca/finance .
*** Budget Details & Photo courtesy Government of Nova Scotia***