Nelson & District Credit Union welcomes decision to defer a tax increase
By Contributor
Nelson & District Credit Union is pleased that the Government of British Columbia has decided to retain the current tax rate on credit unions, while consulting further on the matter.
The deferral will enable the province to consider the impact of the tax increase within the context of its ongoing review of the two main pieces of legislation governing the credit union sector.
A competitive tax environment allows credit unions to reinvest in a diverse economy by creating quality, head-office jobs across the province, providing more financial support for community projects; and making more local lending decisions to help small businesses and individuals.
“We are pleased by this decision,” said Tom Murray, CEO of Nelson & District Credit Union.
“This means we will have more money to lend to our members and support local businesses and home owners. We look forward to meeting with the government to explain our position and help develop regulations and legislation that will allow us to grow.”
The province had planned to phase out a small business tax rate on credit unions and increase it incrementally over the next four years.
The lower tax rate was put in place in recognition of the fact that credit unions, as BC’s cooperatively-owned financial sector, are in a unique position to reinvest capital back into the provincial economy, as well as support initiatives in local communities.
For the past three years BC credit unions have been advocating for a continuation of the existing tax rate.
