Health costs are expected to double in the province if and when the BC government eliminates medical service premiums(MSP) and replaces it with the Employer Health Tax(EHT).
The government plans to introduce the new tax in 2019 and by 2020, will remove MSP. Organizations with payrolls over $500,000 will be taxed 0.98 per cent, which will increase to 1.95 per cent for payrolls over $1.5 million. Payrolls under $500,000 will be exempt.
Murry Krause, City of PG Councillor, says there could be consequences to this action.
“To eliminate the MSP premiums means the province would have to secure those funds from elsewhere, so, it really is about where those funds would come from and this employers health tax is what was decided to be the route to do so and now we are seeing the impact.”
“The reality is, our citizens may have to pay less in MSP premiums, but may have to pay more in property taxes.”
EHT is expected to increase Prince George’s health costs to $667,358, totalling $1.371 million.
A survey conducted by the Union of BC Municipalities concluded that the implementation of the EHT will lead to property tax increases for the majority of British Columbia’s population and will have an impact on the private sector, since businesses that are already paying the EHT directly will likely face increased property taxes as well.
Something going on in the Prince George area you think people should know about?
Send us a news tip by emailing [email protected].
