New tax rates for richest New Brunswickers introduced

The Gallant governmentintroduced amendments to the New Brunswick Income Tax Act on Thursday that will increase personal rates for the province's richest residents and help generate revenue for the provincial coffers.

Those with a taxable income of between $150,000 and $250,000 will nowsee a new personal income tax rate of 21 per cent imposed, while the rate for taxable incomes over $250,000 will be 25.75 per cent,said Finance Minister Roger Melanson.

The previous rate was 17.84 per cent.

The new rates, announced in the March budget, will raise an estimated $30 million per year in additional tax revenue, said Melanson.They take effect this year.

We believe that asking our richest residents to contribute more is reasonable, fair and progressive.- Roger Melanson, Finance minister

"We believe that asking our richest residents to contribute more is reasonable, fair and progressive," Melanson said in a statement.

The province is currently facing a deficit of about $400 million.

"Our government is committed to fiscal responsibility and to ensuring that those with the greatest ability to pay contribute to improving our province's financial situation," Melanson said.