The Higgs government has proposed using a portion of its $163-million carbon tax revenue to lower income tax rates for those in the lowest tax bracket.
New Brunswick’s first tax bracket would see rates drop from 9.68 per cent to 9.4 under the province’s plan, and the low-income tax reduction threshold would rise from $17,630 to $17,840 in 2021.
In total, a combined $106 million would be returned to taxpayers, including $28 million earmarked for the more than 420,000 New Brunswickers in the first tax bracket.
The lion’s share of the carbon tax revenue is a $78-million portion which the government says would be diverted to taxpayers through last year’s reduction in gasoline and diesel taxes.
The remaining $57 million of revenue would be split, with $36 million going to the province’s Climate Change Fund and climate initiatives, $12 million to the natural gas distribution offset, and the remaining $9 million to First Nations communities.
The Progressive Conservative government says the proposed savings would start July 1 and be reflected in next spring’s tax return.
In a news release issued Tuesday, Finance Minister Ernie Steeves said the plan shows the Tories are committed to sustainable communities while also prioritizing the environment.
