HST credit payments for eligible New Brunswickers to begin in October

New Brunswickers who qualify for a provincialharmonized sales tax credit will receive their first payment in October, Finance Minister Roger Melanson announced on Wednesday.

It will actually be a double payment, covering the period betweenJuly and December, said Melanson.

Subsequent HST credit payments will be made every three months, either by direct deposit or cheque.

"We are working with the Canada Revenue Agency (CRA)to ensure eligible residents receive credit payments as quickly and efficiently as possible," Melansonsaid in a statement.

The credit for lowandmiddleincome families wasannounced earlier this year to soften the impact of an HST hike. Effective July 1, the HST will be increased to 15 per cent, from 13 per cent, in a bid to help balance the budget.

CRA will distribute the HST credit on behalf of the provincial government by adding it tothe federal GST/HST credit payments already received by eligible residents, Melanson said.

The tax credit could hand back $300 to individuals, $300 for a spouse or partner, and $100 per child under the age of 19, officials have said. Single parent families can also receive a $300 credit for their first child under this new system.

Quarterly payments less than $50 will be accumulated and paid annually.

The full HST credit will be provided to individuals and familieswithincomes of less than $35,000 per year.

Individuals with an income of less than $50,000 and familiesof two adults and two children with a combined income of less than $75,000could also receive some credit.

The HST credit will provide about $100 million in direct financial support to New Brunswickers, Melanson said.

The HST hikewill mean about $300 million in revenue for the cashstrapped provincial government.

Even with the tax increase, the provincial government is expecting a $347-million deficit in 2016-17 and a balanced budget is not being forecast until 2020-21.