Quebec to shift fiscal policy by lowering income taxes, increasing sales tax
Published Thursday, September 3, 2015 10:14AM EDT
Last Updated Thursday, September 3, 2015 7:54PM EDT
Provincial Finance Minister Carlos Leitao announced the change in fiscal policy on Thursday morning at the commencement of a commission on Quebec's fiscal policy.
The minister said that a one percentage point increase in the TVQ would generate about $1 billion in revenue for the province.
Before increasing the sales tax, the province would lower income taxes by an equivalent amount, effectively creating a revenue-neutral policy.
Leitao was appearing before a parliamentary commission chaired by University of Sherbrooke economist Luc Godbout.
He anticipated the changes would be tabled in the next provincial budget, and be fully implemented by 2018.
Leitao said the overall effect of the policy would be to increase household revenue and increase the Gross Domestic Product for the province.
With a file from The Canadian Press