QUEBEC CITY – The Quebec government will reduce income taxes while increasing the provincial sales tax by one percentage point.
Finance Minister Carlos Leitao told reporters Thursday the government would reduce income taxes first before following up with sales tax hike.
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Leitao said the move is recommended in a report examining Quebec’s taxation policies published in March.
He said the one percentage point hike in the QST would generate about $1 billion in revenues for the government.
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Leitao said the accompanying income tax reduction means the reform will come at no cost to the province, but should increase the disposable income of Quebecers as well as the province’s gross domestic product.
The changes could be introduced in the next provincial budget and be implemented fully by 2018.