QUEBEC — The Quebec government will reduce income taxes while increasing the provincial sales tax by about one per cent.
Finance Minister Carlos Leitao told reporters today the government would reduce income taxes first before following up with sales tax hike.
Leitao says the move is recommended in a report examining Quebec's taxation policies published in March.
He says the one per cent hike in the QST would generate about $1 billion in revenues for the government.
Leitao says the accompanying income tax reduction means the reform will come at no cost to the province, but should increase the disposable income of Quebecers as well as the province's gross domestic product.
The changes could be introduced in the next provincial budget and be implemented fully by 2018.
