Nova Scotians Start New Year With Tax Break

Nova Scotians will enjoy the benefit of a 10 per cent reduction in personal income taxes beginning on New Year's Day.

"As noted in our 2003-04 budget, the government is delivering on its promise to help working families in Nova Scotia by lowering taxes," said Finance Minister Peter Christie. "Tax relief is a government priority that will help Nova Scotia become a better place in which to live and work."

The reduction means that a family of four with a single wage earner making $40,000 will save an estimated $276. A single individual earning $20,000 will save about $106. A family of four, with a single wage earner and income of $60,000, will save an estimated $550. It also means that more than 3,500 Nova Scotians on the low end of the income scale will no longer have to pay any provincial income taxes.

"The new, lower tax rates, effective New Year's Day, will give Nova Scotia the lowest statutory rates in the Atlantic provinces," said Mr. Christie. "They will improve our competitive position with the rest of the country but, most important, they will put more money into the hands of working Nova Scotians."

The lower tax rate will be reflected in the first pay envelopes that Nova Scotians receive from their employers for the first pay period in the calendar year 2004.

Mr. Christie said lower taxes and reduced government spending are key to long-term economic growth and prosperity for Nova Scotia.