August 15, 2007
For immediate release
Cabinet Approves Increased Disability Tax Credit
“This Government is committed to tax fairness,” Premier Ghiz said. “I am very pleased that our commitment to work toward greater tax fairness for Islanders is moving forward. Today, we have brought greater tax fairness for Islanders. This measure will increase support for Islanders and their families with disabilities.”
The increased provincial deduction brings the Provincial Disability Tax Credit in line with the current federal amounts.
The maximum provincial Disability amount will increase to $6,890 and the Disability Supplement will increase to $4,019. The threshold for child and attendant care expenses used to calculate the Supplement will also increase to the federal amount. The increased amounts will be transferrable.
“This is the first step to improve income tax fairness to Islanders,” Provincial Treasurer Wes Sheridan said. “These changes will reduce the amount of provincial income tax payable by disabled Islanders by up to $244 this year. We are reviewing the entire personal income tax system, and government will make changes to improve income tax fairness for Islanders in upcoming provincial budgets.”