On April 20, 2021, the B.C. Minister of Finance announced the 2021 budget. We have highlighted the most important things you need to know.
If you are self-employed and received the B.C. Emergency Benefit for Workers, you will no longer be required to repay this benefit if you would have qualified for it based on your gross income (instead of your net income). This mirrors a federal change to the Canada Emergency Response Benefit.
The budget confirmed a previously announced increase to the Home Owner Grant to $1.625 million (from $1.525 million) for the 2021 tax year. This grant helps reduce the amount of property taxes you pay.
As of April 21, 2021, electric bicycles and tricycles will be exempt from provincial sales tax (PST). Also, electrical conversion kits and parts and services for bicycles and tricycles will be exempt from PST.
The provincial sales tax refund for motor vehicles purchased and resold within seven days has been eliminated. This elimination will apply on a date still to be set by regulation.
The budget confirms a previously delayed increase to the carbon tax rate. As of April 1, 2021, carbon tax rates were set at $45 per tonne. They will increase to $50 per tonne on April 1, 2022.
The budget increases the tax rate on tobacco products as of July 1, 2021:
On cigarettes and heated tobacco products (vaping), taxes will increase from 29.5 cents to 32.5 cents per cigarette or heated tobacco product.
On loose tobacco, taxes increase from 39.5 cents per gram to 65 cents per gram.
Corporations owned by government agents are now exempt from the speculation and vacancy tax.
Also, the following changes have been made and are retroactive to November 27, 2018:
Properties owned by a trustee for a trust that benefits a registered charity can claim an exemption from the speculation and vacancy tax.
If someone has a beneficial interest in a property contingent on the death of another individual, they will no longer be included in the definition of “beneficial owners” for this tax.
We can help you assess the impact of tax changes in this year’s budget on your finances or business. Give us a call today!
Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.
Insurance products are offered through PPI Management Inc., a national licensed insurance marketing organization that support independent advisors with their business, and through multiple insurance companies.
