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B.C. government moving forward with plans to eliminate MSP

Medical Service Plan (MSP) premiums are going to be a thing of the past in British Columbia, also there’s still a bit of a wait until that happens.

The Government of B.C. is moving forward with its plan to eliminate MSP premiums and introduce the employer health tax (EHT).

<who>Photo Credit: NowMedia

The move will come into effect on Jan. 1, 2020 and it’s expected to save people and businesses around $800 million a year on taxes.

Individuals will save up to $900 each year and families will save up to double that amount.

“People deserve a break, which is why we're eliminating regressive MSP premiums," said Carole James, Minister of Finance. "The EHT is a fairer approach, similar to other provinces, and that means lower taxes for British Columbians."

The EHT Act was tabled in the legislature today and it means that less than 5% of B.C. businesses will pay the full EHT rate of 1.95%.

Meanwhile, the majority of small businesses are protected with a $500,000 exemption amount that phases-out gradually.

Today’s legislation also establishes a $1.5-million exemption amount for charities and non-profits, which is similarly phased out.

B.C.’s EHT rate is tied with Ontario for the lowest payroll tax rate in the country.



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