Tax relief for the new year
Supporting Island families -
Islanders will pay less in taxes this year due to decreases in taxes on gas and diesel.
As of midnight, December 31, tax on gas is reduced by 3.42 cents per litre, with a 4.37 cents per litre reduction on diesel tax.
“Islanders are working hard and our province’s financial position means we can pass the benefits of our strong economy back to Islanders,” said Finance Minister Heath MacDonald. “Whether it is through reductions in taxes on fuel, income, or small business, more money in the pockets of Islanders will help everyone focus on their priorities for the success of their families and communities.”
These reductions in fuel tax are part of the Prince Edward Island government’s commitment to reducing taxes for Islanders. This is in addition to previously announced decreases in the basic personal tax exemption, reductions to the small business tax rate, and a rebate equivalent to the provincial portion of the HST on electricity and wood-sourced fuels.
Two reductions in the basic personal income tax in 2018 represent a total savings of $8.2 million and mean 5,200 Islanders no longer pay any provincial income tax.
Reductions in small business tax and the new capital investment grant represent a savings of $2.4 million for PEI small businesses; up to $5,000 for an individual business.
The rebate of the provincial portion of the HST on electricity, propane and wood-based fuels will also save Islanders $10 million a year.
The reduction to the fuel tax is independent from any petroleum pricing decisions approved by the Island Regulatory and Appeals Commission.