2015-2016 Prince Edward Island budget highlights
Canadian tax alert
On June 19, 2015, Finance Minister and Chair of Treasury Board Allen F. Roach presented the 2015-2016 Prince Edward Island budget.
The fiscal position of the province is summarized as follows:
- A deficit of $34.7 million is projected for fiscal year ended March 31, 2015, lower than the original estimate of $39.7 million in budget 2014-2015.
- A deficit of $19.9 million is projected for fiscal year ended March 31, 2016.
- Fiscal balance is expected to be achieved in 2016-2017.
- Revenues are expected to grow by 1.4% and expenditures by 0.5% for fiscal year ended March 31, 2016.
- The unemployment rate was 10.6% in 2014, down 1.0 percentage points from 2013.
- There was real GDP growth of 1.3% in 2014.
The following is a summary of the tax highlights from the budget.
Measures concerning business
- The budget contains no changes in corporate tax rates and introduced no new taxes or fees.
Measures concerning individuals
- Low-income tax reduction - The budget proposes three changes to the low-income tax reduction, effective as of the beginning of 2015:
- Increase the amounts of the basic credit and the spouse/equivalent-to-spouse credit by $50 from the current $250 to $300 and the amount for each dependent child by $50 from $200 to $250;
- add a new senior credit of $250 for persons aged 65 and older; and
- raise the income threshold at which a person will receive the full value of the credits from the current $15,000 per year to $17,000 per year.
Sales tax measures
- As of midnight on June 19, 2015, tax on tobacco will increase by 2.5 cents per cigarette (or $5 per carton of 200 cigarettes) and tax on fine tobacco by 4.0 cents per gram (or $8 per 200 grams).
For further details, we refer you to the Ministry of Finance website.