2010-2011 Quebec budget highlights (March 30, 2010)
QST for Quebec Sales Tax, in French TVQ, (Taxes des Ventes du Québec) is nominally 7.5%, but also applied to federal 5% GST. Effective provincial rate is 7.875%. The combined Federal and provincial rate is 12.875%. QST is a value-Added Tax like HST.
For more information:
http://www.budget.finances.gouv.qc.ca/Budget/2010-2011/en/index.asp
Measures related to commodity taxes
- The Provincial sales tax will increase one percentage point to 9.5 per cent on Jan. 1, 2012; the rate is already climbing to 8.5 per cent from 7.5 per cent on Jan. 1, 2011, under a measure announced in last year's budget.
- There will be a hike of one cent a liter in the fuel tax as of April 1, and similar annual increases for another three years after that. They will rise from 15.2 cents per liter of gasoline and 16.2 cents per liter of diesel fuel until they reach 19.2 cents and 20.2 cents, respectively, as at April 1, 2013.
- The QST rebate regarding a new residential unit will be increased. The rate will rise from 36% to 50% and the threshold value of a new residential unit at which no rebate is granted will be raised from $225,000 to $300,000. Generally, after December 31, 2010, the maximum rebate that may be obtained will be $8,772.
Measures concerning businesses
The Capital Cost Allowance for trucks and tractors designed for hauling freight are increased from 40% to 60%. An additional deduction of 85% in for those trucks and tractors that run on liquefied natural gas. The measure will apply to new property acquired after March 30, 2010.
The refundable tax credit of 90% applicable to construction and major repair of public access roads and bridges in forest areas will be extended until March 31, 2013. But the tax credit will be reduced by 10 percent each year to 80% for expenses incurred in calendar year 2011, 70% in calendar year 2012, and 60% in calendar year 2013.