CHARLOTTETOWN, P.E.: The Canadian Taxpayers Federation is praising the Prince Edward Island government for its commitment to tax relief but is also calling on it to stop increasing the debt.

“The Lantz government is delivering tax cuts that will put more cash in the pockets of hard-working Islanders and save businesses money,” said Devin Drover, CTF Atlantic Director. “These tax cuts will save taxpayers $15 million this year.”

Key measures include a 1.8 per cent adjustment to all income tax brackets and an increase in the basic personal amount from $14,250 to $15,000.

For Island businesses, the budget includes a one per cent reduction in the general corporate tax rate, and an increase in the small business income tax threshold from $500,000 to $600,000.

“While these tax cuts are a positive step, Premier Lantz must now focus on cutting wasteful spending to avoid piling on more government debt,” Drover said. “This would allow for even more tax relief in the future.”

The Island government is projecting a $184-million deficit for 2025, including estimated contingency spending. Total spending in this budget is increasing by $295 million compared to Budget 2024.

The province’s debt is expected to reach $3 billion by the end of 2025. Interest costs are projected to cost taxpayers $169 million, which is about $947 per Islander.