After slashing Medical Services Plan (MSP) premiums by 50% in January, the BC NDP have announced further cuts.
Today’s new provincial budget was highlighted by a promise to eliminated MSP premiums entirely starting in 2020.
According to the B.C. government, removal of the fees will save individuals up to $900 per year and families up to $1,800 per year.
However, effective in 2018-19, the MSP will be replaced by a new 1.95% Employer Health Tax (EHT), with businesses with payrolls between $500,000 and $1.5 million paying a lower rate and businesses with a payroll over $1.5 million paying a full rate. Small businesses with payrolls less than $500,000 will not have to pay the new tax.
“BC is an outlier in Canada as the only province that levies unfair, regressive MSP premiums that penalize families and individuals,” said BC Minister of Finance Carole James during her budget speech.
“It will take some pressure off people’s pocketbooks. And it will help make our tax system more fair and progressive.”
More to come...
