In the province’s first budget update of the year, Quebec Premier Philippe Couillard announced plans to trim taxes, offer reprieve from school fees and new cash payments to offset the impact of inflation.
The Liberals will move ahead with cuts to corporate taxes, continuing the rollback from the top rate, which will be cut to 11 per cent, from 12 per cent, in 2017. That will boost government revenue by $400 million, more than offsetting the impact of the scheduled elimination of the federal goods and services tax.
Another $1.5 billion will be saved in provincial operating costs by 2020 by reducing overall budget growth from 3.5 per cent to 2.5 per cent.
Mr. Couillard said Quebec has one of the fastest-growing economies in the world and as a result, sees its decision to join the Canada Pension Plan as a prudent one.
The economic report also revealed the province is following through on its promise to bring in tax cuts — it reduced its top personal income tax rate to 12 per cent this year.
Quebec is replacing its school tax rebates with payments in partial reimbursements.
The cash payments will be made for children up to age 19.