06/09/2015 08:21 EDT | Updated 06/09/2016 05:59 EDT

P.E.I. Liberals Aim To Cut Taxes For Low-Income Islanders

CHARLOTTETOWN - Proposed legislation would reduce or eliminate provincial income taxes for thousands of taxpayers in Prince Edward Island.

Finance Minister Allen Roach says changes introduced Tuesday to the Income Tax Act will help 12,000 lower-income Islanders and eliminate provincial income tax altogether for more than 2,500 taxpayers.

Roach says the changes are targeted at seniors, working single parents and those on low-income.

The changes would increase the value of the basic spouse and child tax credits by $50 and add a new $250 senior credit for people aged 65 and older.

The income threshold for receiving the full value of the credits will also be raised to $17,000 a year from the current $15,000.

The changes are retroactive to the beginning of the current tax year so the savings can be realized when 2015 taxes are filed in 2016.

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