Doug Ashbury
Northern News Services

Iaqluit (Oct 23/00) - Nunavummiut will find benefits in the Liberal government's mini-budget, says Kelvin Ng.

"Overall, it's not bad, particularly for lower and middle income earners," the Nunavut finance minister said.

Last week, in a pre-election mini-budget, federal Finance Minister Paul Martin announced a plan which would accelerate and deepen tax reductions announced in the 2000 budget.

For Nunavummiut, Ng adds, there will be benefits from lower income tax, higher child tax benefits and the one-time relief for heating expenses. Under the latter, the federal government is offering lower income Canadians a $125 rebate per individual or $250 per family.

On fuel costs, Ng adds the Nunavut Government is expected to announce tomorrow (Tuesday) just how much higher it will set its fuel rates. Nunavut Government buys fuel in bulk and distributes it to communities. Pricing will be effective Nov. 1.

On Northern initiatives, Ng said he was not anticipating anything specific to Nunavut in the mini-budget.

He does however hope to see "something specific to Northern economic initiatives, Northern housing and Northern healthcare" in the next full budget.

The mini-budget's proposed tax changes would be effective Jan. 1, 2001.

Under the income tax changes, a family of four with two incomes totalling $60,000 will pay about $1,000 less income tax compared to last year. In another example, single parents earning $33,000 last year paid about $900 in income tax. Next year, under the new tax schedule, their net taxes will be reduced by about $1,000.

"I think it's a great mini-budget. Especially for individuals who make up to $100,000 a year," Andy Wong, an accountant with Yellowknife's MacKay and Partners said.

Wong said an individual making $30,000 will see about $350 in tax savings. Those making $61,000 will see a tax saving of about $1,200, he adds.

Wong also said full-time students and the disabled will also benefit.