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Canadian Government to lower Taxes for Middle Class in 2020 to Raise Basic Personal Amount (BPA)

Posted - 27, Dec 2019

The liberal government of Canada is known for its lenient policies for the common man, as they prefer investing in people. The government policies have not only benefited the Canadian citizens, but also the immigrants and their families in last few years.

A few of such lenient steps taken by the government are, 2015 tax cut for the middle class, the Canada Child Benefit, providing help to local and international students, and more substantial seniors' benefits. These changes and reforms have positively influenced Canadian economy, growth and development.

Government proposes the increase in BPA, plans Tax cut to achieve the same

In order to put more money in the pockets of Canadians and sustain the continuing economic development, the Government has introduced a plan to raise the Basic Personal Amount (BPA). The BPA is the amount of money Canadians people can earn before paying federal income tax. This rise in the BPA will take effect from 1st January 2020 and it will be the first step raise the BPA to $15,000 by 2023, as per the proposal of the government of Canada.
  • Once totally implemented, the increased BPA would result in the lower taxes for close to 20 million people of the maple leaf country.
  • Single Canadians would save close to $300 in taxes every year, and families, including those led by a single parent, are likely to save close to $600 every year.
  • The whole plan likely to put $3 billion into the pockets of Canadian households in 2020, with this amount increasing to $6 billion by 2023.
  • To make certain that this tax relief benefits the people, who require help the most, the Government would phase out the benefits of the raised BPA for wealthy individuals.
Speaking about the government's policy to raise BPA, Minister of Finance, Mr. Bill Morneau said, "We know that when we invest in people - when we give them the help they need to build a better life for themselves and their families - everyone benefits. Our plan to increase the Basic Personal Amount would mean even more money in the pockets of Canadians to help make life more affordable and keep our economy growing."
Also read- How to get Canada Permanent Resident visa from India?

Modernization of Home Buyers' Plan (HBP)

Canadian government is also planning to fulfil its promise to modernize the Home Buyers' Plan (HBP). This plan helps the first-time home buyers save valuable bucks on the down payment as it allows them to withdraw up to $35,000 from a registered retirement savings plan in order to buy or build a home without the requirement to pay tax on the withdrawal.

From 2020, people going through personal life issues, i.e. marriage or relationship break down etc., will now be able to access the HBP, which will help them to uphold home ownership, even if they do not fulfil the first-time home buyer requirement.

With a democratic setup, liberal government policies, available employment opportunities and fantastic infrastructure, Canada is certainly the best country to immigrate to in 2020. To plan permanent residency in Canada in 2020, it's the best time to prepare your immigration file under the guidance of a trusted Canada immigration consultant.

Immigrate to Canada in 2020- Contact Visas Avenue for trusted Assistance

In case, you wish to immigrate to Canada on permanent resident visa through best immigration program, i.e. Express Entry or PNP, etc., you may get in touch with trusted Visa Advisors and experts at Visas Avenue to get genuine support and assistance in visa filing, documentation, selection of right PNP, etc.

Visas Avenue is the top &registered Canadian Visa Consultancy Service in India. It has an incredible success rate for helping people acquire the Canada PR Visa in easy steps.

To start your immigration process now, you may call Visas Avenue migration experts on Toll Free Number- 78-18-000-777. Moreover, to get your eligibility checked and subsequently, receive a call from the visa expert, you may fill the free assessment form.

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