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).
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.