The following News Release or Speech has just been posted on the Finance Canada Site.
Ottawa, February 2, 2009
The Honourable Jim Flaherty, Minister of Finance, today tabled in the House of Commons a detailed Notice of Ways and Means Motion to implement Budget 2009 measures. The Notice also includes provisions referenced in Budget 2009 to implement most remaining tax measures from the February 26, 2008 budget as well as the November 27, 2008 Economic and Fiscal Statement.
“Canada’s Economic Action Plan is a comprehensive plan to stimulate economic growth, restore confidence and support Canadians and their families during a synchronized global recession,” said Minister Flaherty. “Tax reductions are an essential part of our plan. The relief proposed under Budget 2009 builds on our strong record of reducing taxes and creates a solid foundation for future economic growth, more jobs and higher living standards for Canadians.”
Included in the Notice are the proposed increases to the basic personal amount and the upper limits for the two lowest personal income tax brackets by 7.5 per cent above their 2008 amounts. These and other personal income tax measures proposed in Budget 2009 will deliver $20 billion in income tax relief over this and the next five fiscal years.
Other Budget 2009 proposed tax measures in the Notice include:
* Increasing by $1,000 the amount upon which the Age Credit is calculated.
* Increasing to $25,000 the maximum amount eligible for withdrawal under the Home Buyers’ Plan.
* Introducing amendments to the rules related to Registered Retirement Savings Plans and Registered Retirement Income Funds to allow for recognition of losses in accounts between the time of the annuitant’s death and final distribution of property from the account.
* Extending the Mineral Exploration Tax Credit for one year.
* Increasing to $500,000 the amount of active business income eligible for the 11 per cent small business income tax rate.
* Implementing the Customs Tariff measures referenced in the budget, such as:
o Eliminating tariffs on a range of imported machinery and equipment.
o Clarifying conditions under tariff 9801.10 pertaining to cargo containers.
o Modifying the tariff treatment of milk protein substances.
* Setting the premium rate provided for under the Employment Insurance Act for the year 2010.
“Our government intends to act quickly to table further legislation that will include additional tax relief measures, such as the Home Renovation Tax Credit (HRTC), that were proposed in Budget 2009” said Minister Flaherty. “The HRTC will provide up to $1,350 of tax relief on work performed or materials acquired after January 27, 2009 and before February 1, 2010.”
The Notice can be viewed on the Department of Finance website. References in the Notice to “Announcement Date” are to be read as references to today’s date. Explanatory notes will be released soon and will also be available as an electronic link in this release.
Further information on Budget 2009 is available on the Department of Finance website.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance