17 May 2021
The Government of New Brunswick, Canada has issued a release announcing the introduction of amendments to reduce provincial personal income tax due to carbon tax revenue. This includes a reduction in the first tax bracket from 9.68% to 9.4% and an increase in the Low-Income Tax Reduction threshold from CAD 17,630 to CAD 17,840 for the 2021 taxation year. These changes are to begin on 1 July 2021 and be fully reflected in the 2021 tax returns filed in the spring of 2022.
Amendments introduced to reduce provincial personal income tax due to carbon tax revenue
11 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:
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.
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