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.
Increase in tobacco tax
Furthermore, 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 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 the revenues from this measure at $300 million over five years.
End of assistance for purchasing 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 sale price based on the higher of the following two: 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 self-declared value of the vehicle. In 2022, there have been more than 130,000 transactions indicating 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 on 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 due to end this year.
The monthly assistance of $100 granted to low-income households who spend between 30% and 50% was to end on September 30, 2024 but is finally maintained until September 30, 2027. Approximately 66,000 households benefit from this assistance according to the 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, the government illustrates.