Quebec finance minister hints at tax relief
Important that businesses, individuals benefit from competitive system, he says
QUÉBEC The Couillard government has businesses and individuals “in its sights” as it aims to lighten the tax burden, according to Finance Minister Carlos Leitao.
Leitao referred to unspecified tax relief during an afternoon teleconference Friday about the government’s first quarter budget results.
Asked whether tax relief was in the cards for 2018-2019, the minister said simply, “We shall see.” Asked to be more precise, Leitao gave a few more hints, regarding small and medium-sized businesses (SMEs). “It is important that businesses benefit from a competitive tax system, as well as individuals. Both are in our sights, but I really emphasize SMEs,” he said.
The Liberals promised in 2014 to devote half of the budget surplus to reducing the tax burden.
The monthly report of financial operations that the minister was commenting on indicates that Quebec has amassed a small surplus of $98 million in the first trimester of the 2017 fiscal year.
A profitable June managed to wipe clean the slate after deficits in April and May.
If payments to the Generations Fund of $506 million are taken into account, the surplus is more like $604 million from the beginning of the fiscal year.
The report shows an increase of 4.8 per cent of revenues in general funds for the first three months of 2017, compared to the same period of 2016, or an additional $923 million.
This considerable surplus is attributed to increases in goods and services taxes ($230 million), corporate taxes ($202 million), personal income tax ($145 million), as well as revenues from government enterprises ($47 million).
Federal transfers also increased, mainly due to equalization ($262 million).