QUEBEC, Nov. 7, 2019 /CNW Telbec/ - The Ministère des Finances du Québec announced today a 1.72% indexing rate, which will apply as of January 1, 2020 with regard to parameters of the personal income tax system, social assistance benefits and certain government rates.
$537 million to protect the purchasing power of Quebecers
The indexing announced today protects the purchasing power of Quebecers to the tune of nearly $537 million.
In concrete terms, this means that the value of most tax measures under the personal income tax system will increase by a level equivalent to the rise in consumer prices in Québec in 2020. The increase corresponds to tax relief of nearly $527 million for taxpayers.
In addition, the indexing of the social assistance program benefits will allow the most disadvantaged Quebecers to benefit from additional financial assistance of nearly $43 million.
Lastly, the indexing rate will apply to government fees that are not yet subject to an indexing rule or set annually. Indexing reflects the increase in the cost of fee-based services without raising the service user's share of the cost. For a complete year, indexing will generate more than $32 million in additional revenues, which will be used to maintain the quality of public goods and services.
The document entitled Parameters of the Personal Income Tax System for 2019 presents the main changes stemming from the indexing announced today and is available on the Ministère des Finances website at www.finances.gouv.qc.ca.
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