Smokers will pay more after tax hike in 201516 Prince Edward Island

CHARLOTTETOWN – The Prince Edward Island government has tabled a $1.7 billion budget that hikes taxes on cigarettes while spending more on health care.Finance Minister Allen Roach says his fiscal plan for 2015-16 is a “reality budget” that will help the province live within its means.The budget includes a projected deficit of $19.9 million and forecasts a balanced budget in 2016-17.Nearly half of the budget will be devoted to health care, and about $2 million in revenue will come from increased taxes on tobacco and cigarettes.“The public told us, ‘We don’t want to see big cuts in health care or big cuts in education. We want you to be reasonable in how you approach this’,” Roach said.“This budget addresses issues without making it awkward or cumbersome to the public.”Roach said the government is focused on increasing exports and growing the population.Darlene Compton, the finance critic for the Opposition Progressive Conservatives said that for a government that campaigned on change, the budget is very similar to others previously tabled by the Liberals.“This budget continues the tradition of this government to chip away at the disposable income of Islanders through hikes to fees, licenses and taxes,” Compton said.____MAJOR BUDGET THEMES:Roach says the budget builds on the Island’s strong primary industries like farming, fishing and aquaculture, supporting innovation in those sectors while also supporting the development of new industries.He said the government is working to be more efficient and will reduce the size of the public service through attrition.“We’re not eliminating any positions in this budget. What we’re doing is we’re looking at those who are retiring and looking at how we can re-engineer those jobs to continue to do the work that was done there,” Roach said.Roach said there are no targets for the number of jobs the government would like to cut.____KEY SPENDINGHealth care represents 40 per cent of the 2015-16 budget, including such initiatives as the P.E.I. Generic Drug Program, which will launch in October.Roach says it will cap payments at less than $20 and save Islanders $2 million in drug costs in 2015-16.The budget also includes an additional $500,000 for enhanced home care for the elderly and doubles the budget for breakfast programs in schools.Funding for UPEI and Holland College will increase by $1 million, and $1.4 million will be spent on a new program to help prevent food tampering.____TAX CHANGES:The tax on a carton of 200 cigarettes will increase by $5 and the tax on 200 grams of fine tobacco will rise by $8 as of midnight, generating another $2 million in revenue annually.The budget also enshrines recently-announced changes to the Income Tax Act that adjust the levels of basic credits and the threshold at which Islanders can keep their full credit amounts.As a result 12,000 Islanders will have their taxes reduced by hundreds of dollars and 2,300 Islanders will no longer be required to pay Provincial Income Tax. Government revenues will be reduced by $1.7 million.____FINANCIAL PROJECTIONS:The deficit for 2014-15 is now forecast at $34.7 million, down $5 million from the budget forecast.The 2015-16 budget increases the net debt by $28.7 million to nearly $2.18 billion by the end of March 2016 – about $15,000 for every Islander.The budget projects a 1.4 per cent increase in revenues from budget 2014-15 and a 0.5 per cent increase in program expenditures.Roach also told the legislature the unemployment rate is expected to fall below double digits in 2016 for the first time in 38 years. Smokers will pay more after tax hike in 2015-16 Prince Edward Island budget by Kevin Bissett, The Canadian Press Posted Jun 19, 2015 8:24 am MDT Last Updated Jun 19, 2015 at 11:21 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more

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Consumers back industry call for a scrappage incentive scheme

FranceOver ten years old€1,000-2,000 to purchase a new car which is less than 160 g/km or an LCV.220,000 ItalyMore than ten years old €1,500 to purchase a car which is at least Euro 4 engine specification and emits less than 140g/km for petrol and 130 g/km for diesel.200,000 The proposed scheme could see drivers of cars over nine years old offered a £2,000 incentive towards a new or nearly new car in return for scrapping their existing one1. A similar scheme already operating in Germany has successfully boosted the new car market, increasing registrations by 21.5% in February – the first year-on-year monthly rise since July 2008. To view a video report please follow this link CountryCriteriaIncentiveBoost to market Results from an independent consumer survey commissioned by the Society of Motor Manufacturers and Traders (SMMT) show that 76% of consumers are in favour of the UK government introducing a scrappage incentive scheme similar to those currently running across Europe. The survey, undertaken by MM-Eye, a market research company specialising in automotive research, showed that 61% of people said they were likely to take up the offer and 66% of people agreed with the idea of taking older cars off the road and replacing them with newer ones because of the positive environmental impact. RomaniaOver ten years old€1,000 to purchase a car.60,000 AustriaOver 13 years old  €1,500 to purchase a new car with Euro 4 as minimum engine specification. e 30,000 GermanyOver nine years old €2,500 to purchase a car up to 12 months old with Euro 4 as minimum engine specification.  400,000 GreeceNo age limit €400-800 to scrap vehicle plus €1,500-3,400 if purchase a new vehicle.e 20,000 Commenting on the survey, SMMT chief executive Paul Everitt said; “The scrappage incentive scheme is a popular way for government to support the automotive industry and provides good value for money for the tax payer. The increased VAT revenue to government largely offsets the cost of the scheme, yet the positive impact it could have on building consumer confidence and boosting the new vehicle market are extremely valuable to the UK automotive sector and the 800,000 people that work within it”. Scrappage incentive schemes currently operating across Europe: An average new car emits 14.6% less CO2 than a nine year old model so the scrappage scheme would continue the trend in reducing car emissions. The survey backed this further, showing that people likely to take up the offer would be buying cars at the smaller end of the market, with the lowest CO2 emissions. 88% of those likely to take up the offer said they’d spend up to £10,000 on a new car in addition to the £2,000 incentive. According to JATO Dynamics, the world’s leading provider of automotive data and intelligence, nearly a third of cars newly registered in 2008 fell into this category2 and is the typical cost of a supermini model, which in 2008 emitted 137.7g/km, 12.8% below the national average and over 25% below the 1999 market average. PortugalMore than ten years old€1,000-1,250 for a car which emits less than 140 g/km.e 20,000 SpainOver ten years old or 250,000 km Up to €10,000 0% loan to purchase a new car or LCV. The car must cost less than €30,000 and emit less than 140 g/km. The LCV must emit less than 160 g/km.e 100,000Why is the automotive sector important to the UK economy?·         27 car and CV manufacturers operating in the UK·         1.75 million cars and commercial vehicles produced each year·         £51 billion turnover·         £9.5 billion value added·         Over 800,000 UK jobsClick to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window) read more

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