HST credit offered to low, middle-income families

The Liberals are ushering in a tax credit in order to soften the impact of the planned HST hike on New Brunswick's low- and middle-income families.

• Roger Melanson hikes HST, cuts bureaucracy in Liberal budget

Finance Minister Roger Melason's budget on Tuesday promised to increase the HST by two percentage points by July 1, 2016. This move will cause roughly $300 million to flow into the province's coffers.

But the finance minister said some families will be able to qualify for a refundable tax credit.

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

The full credit will be given to a family with an income of less than $35,000 and the credit will be reduced by two cents for every dollar of income over $35,000.

"This credit is designed to protect low-to-middle income households and will return approximately $100 million to New Brunswickers," Melanson's budget said.