April 19, 2016, No. 2016-24. Prince Edward Island Finance Minister Allen Roach delivered the province’s 2016 budget on April 19, 2016. The budget anticipates a deficit of $9.6 million for the 2016-2017 fiscal year, with anticipated surpluses of $9.2 million for 2017-2018 and $24.5 million for 2018-2019. Although there are no changes to the province’s personal or corporate tax rates, the budget increases the HST to 15% (from 14%), eliminates the Real Property Transfer Tax for first-time home buyers and increases relief for low-income taxpayers, among other changes.
Highlights of tax measures announced in the budget are summarized below.
Harmonized Sales Tax
The budget increases the HST to 15% (from 14%), effective October 1, 2016.
Prince Edward Island Sales Tax Credit
The budget also increases the refundable Prince Edward Island Sales Tax Credit for eligible recipients by 10%, effective July 2016. The budget increases the basic credit amount to $110 and increases the spouse, equivalent to spouse, and supplement amounts to $55. The maximum amount under the enhanced credit will be $220.
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