OTTAWA, Oct. 30 (Xinhua) -- Amid optimism about a
bright economic outlook, Canada's Finance Minister Jim Flaherty on Tuesday
announced a total of 60 billion Canadian dollars (63 billion U.S. dollars) in
tax cuts over the next five years.
In releasing an interim fiscal update, the minister
projected a 11th consecutive budget surplus in 2007-08, estimated at 11.6billion
Canadian dollars (12.2 billion U.S. dollars). Canada is the only G7 nation with
ongoing budgetary surpluses and falling debt.
"We are experiencing the second longest period of
economic expansion in Canadian history. By any measure, our economic and fiscal
fundamentals are as solid as the Canadian Shield," he said.
"Like the North Star, we are a bright light for
others to follow. Canada has emerged as a shining example in an economic
universe of rapid change and uncertainty," Flaherty said.
The update proposed the federal sales tax be reduced
to 5percent from 6 percent from January 1, 2008. Personal income tax rate would
be cut by 0.5 percent to 15.0 percent, retroactive to Jan. 1, 2007.
The government will also cut corporate tax rates by
one percentage point in 2008. Further cuts will occur each year at a rate of one
percentage point per year, bringing corporate tax rates down to 15 percent by
2012 from 22 percent today.
The report will be voted upon Wednesday as a
confidence motion for the minority Conservative government. Major opposition the
Liberal Party has said it would let it pass, staving off the possibility of an
election.
The other two opposition parties, Bloc Quebecois and
New Democratic Party, have said they would vote against the tax plan.
The government, which has only 126 seats in the
308-seatgovernment, needs the support of at least one opposition to pass votes.
