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Here are the measures that affect your wallet in the new Quebec budget

Photo: Jacques Boissinot The Canadian Press To help low-income Quebecers who are facing rising housing costs, the government is renewing a portion of the Housing Allowance program which was due to end this year.

Clemence Pavic

5:17 p.m.

  • Quebec

Your cigarettes will soon cost you more, the subsidy for the purchase of electric vehicles will decrease before disappearing, the retirement pension is increased for disabled seniors… Overview of the measures announced in the Quebec budget on Wednesday which will affect your wallet.

The enhanced retirement pension

“This is the measure of which I am most proud,” declared the Minister of Finance, Eric Girard, referring to the increase in retirement pensions for disabled seniors. This measure, which concerns some 77,000 seniors, will come into force on January 1, 2025.

In fact, Quebec abolishes the 24% reduction which was applied to the full potential of the retirement pension for disabled people aged 65 and over. Thus, the maximum amount of pensions paid for a disabled beneficiary will increase from $12,445 to $16,375 – an increase of $3,930.

The measure represents additional benefits of $135 million per year, but no contribution increase will be applied, specifies the government.

For good reason, “during the most recent actuarial evaluation of the Quebec Pension Plan (QPP), the basic plan had sufficient financial margin to finance this improvement”. However, there will be no improvement to the RRQ between now and the next public consultation which will take place in 2029, warns Quebec.

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  • Lower growth in health spending this year

Increase in the tobacco tax

In addition, the price of a pack of cigarettes will increase this week. The government announces that it will increase the specific tax on tobacco products twice, a first time on March 13, 2024 and a second time on January 6, 2025.

The two increases will each be $2 per carton of 200 cigarettes – one of the increases of 2 cents per cigarette. Thus, the price of a pack of 25 Pall Mall brand cigarettes will increase from $14.25 to $14.75.

The government estimates revenues from this measure at $300 million over five years.

End of assistance for the purchase of electric vehicles

Subsidies for the purchase of electric vehicles under the Roulez vert program are soon coming to an end. The government announces that they will gradually decrease over the coming years before being abolished on January 1, 2027.

“These vehicles also continue to be eligible for the $5,000 rebate from the federal government, until March 31, 2025 or until funds are exhausted,” Quebec recalls in its budget. .

Discounts for charging stations are maintained.

News regarding the resale of used vehicles

There will be something new soon if you want to sell your used vehicle. As a reminder, by law, you must declare a sales price based on the greater of the following two amounts: the declared value of the vehicle or the estimated value based on the Weekly Valuation Guide.

Currently the guide rates cars as old as 9 years old. So, in general, a vehicle older than 9 years can be sold for the amount of the vehicle's self-declared value. In 2022, there have been over 130,000 transactions with a stated sale price of $1 or less.

Thus, to counter the under-declaration of the sale price of used vehicles, the government announces that the number of years published in the guide will be increased from 9 to 14 years.

The government estimates that this would allow it to raise $255 million in revenue, thanks to the Quebec sales tax applied to the sale of these vehicles.

Extension of housing assistance

To help low-income Quebecers who are facing rising housing costs, the government is renewing a portion of the Housing Allowance program which was to end this year.

The $100 monthly assistance granted to low-income households who spend between 30% and 50% was supposed to end on September 30, 2024 but is finally being maintained until September 30, 2027. About 66,000 households benefit from this aid according to government figures.

Supplement for social assistance recipients

To encourage recipients of the Social Assistance Program and the Social Solidarity Program to join the job market, Quebec is introducing a work income supplement for these people. This is a supplement equivalent to 10% of the work income of beneficiaries of these programs.

For example, a single person who works two days a week at minimum wage – currently $15.25 per hour – will benefit from an increase in their benefit of $870 over one year, illustrates the government.

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116