After ten years of deficits, the government of P.E.I. projects a small surplus for 2017-18. That's good news for Island businesses who have made balancin the budget a top priority for government.
Highlights of Budget 2017-18:
- Balanced- Government projects a $600,000 surplus for the year.
- Limited tax relief- Island taxpayers will see a 2% increase to the basic personal amount- the amount someone can earn before paying personal income tax- as well as the spousal amount. This comes on top of the 3.8% boost given last year.
Lowlights of Budget 2017-18:
- There has been no movement on the small business tax rate which remains the highest in the region.
- While the basic personal amount has been given a boost, tax brackets remain unchanged and since there is no automatic indexation there will be no guarantee that values won't be eroded in the future.
Things to watch:
- We've yet to see government's plan around carbon pricing. No new carbon taxes were introduced in Budget 2017-18 but government will continue to watch regional counterparts and announce a plan that will meet the federal government's mandate later this year.