Press Release

Communiqué de presse
FOR IMMEDIATE RELEASE
CNW CODE 01
QUÉBEC'S TAX SYSTEM TO BE INDEXED BY 2% FOR TAXATION
YEAR 2004
Québec, November 28, 2003 - The Minister of Finance, Yves Séguin, today
announced that the personal income tax system will be indexed at a rate of 2% for
taxation year 2004. This adjustment will apply to the tax table and most tax credits as
of January 1 and will leave an additional $250 million a year in the hands of
taxpayers.
The Minister of Finance pointed out that the 2% rate is higher than the indexing rate
of 1.5% applied in January 2003 and higher than the rate of inflation in recent months.
Québec's consumer price index rose 1.4% between October 2002 and October 2003.
The tax system adjusts for the average increase of 1.5% in the price of essential
goods and services that include food, housing and clothes but it does not cover the
impact of the increase in tobacco taxes in recent years.
“Despite a difficult financial situation, I am pleased to be able to announce that the tax
system will be indexed to protect taxpayers’ purchasing power,” Mr. Séguin indicated.
Lastly, Mr. Séguin reaffirmed the government's commitment to continue indexing the
personal income tax system in the years ahead. “The budget I will table a few months
from now will include an indexing formula that is more representative of the cost of
living,” the Minister concluded.
Bulletin d'information 2003-5 of the ministère des Finances, released today, describes
the application details of this measure. It is available on the website of the ministère
des Finances at: www.finances.gouv.qc.ca
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Source: Serge Privé
Communications Director
Office of the Minister of Finance
[phone]