The BC Liberals will keep in place a corporate income tax cut that is riling the NDP opposition.
The plan is to reduce provincial corporate income tax to 10% from 10.5% on January 1.
“Keeping business taxes low is an essential part of maintaining a competitive tax environment,” said B.C. finance minister Colin Hansen in a release on December 29.
Hansen also sent a tweet on Twitter to emphasize his belief that a lower income tax rate for business will benefit the province.
“We have reduced taxes to some of the lowest levels in the country, and when combined with planned federal tax rate cuts, by 2012, the corporate income tax rate in B.C. will be the lowest of the G7 nations.”
NDP finance critic Bruce Ralston has told media that the Liberals are introducing the corporate income tax cut at the wrong time and that “[the corporate income tax cut] should not come into effect.”
The BC Liberals have reduced the corporate income tax rate five times for a total reduction of nearly 40% since 2001.