Advertisement

Nixed transit tax deduction in federal budget 2017 infuriates Montreal commuters

Montrealers unhappy transit tax deduction not in federal budget 2017
WATCH ABOVE: The federal government has eliminated a decade-old tax deduction from the budget. As Global's Billy Shields reports, commuters in Montreal are not happy.

The federal government has eliminated a decade-old tax cut that allows commuters to deduct a healthy percentage of the cost of their monthly transit passes.

Read more: How the budget will affect your pocketbook

Read more: The federal budget in 3 charts

“I’m doing my best to get to work on time and now the government is cutting that off,” said Lorraine Brunette, a commuter from the south shore.

“What else are they going to cut off?”

Commuters are currently allowed to deduct roughly 15 per cent from their federal taxes.

For an urban commuter using the Metro or bus service, it’s a percentage of a little less than $1,000 annually.

Story continues below advertisement

READ MORE: The biggest losers: What’s missing from the 2017 federal budget?

For someone using commuter trains, the annual fare can be more than $3,000.

The change in the federal budget took transit officials in Montreal by surprise.

READ MORE: Federal Budget 2017: Ottawa sharing less of the cost of major transit projects with cities

“This was actually concrete money in people’s pockets,” said city councillor Marvin Rotrand, though he added that he didn’t think it would hurt ridership.

The tax credit is scheduled to end in June.