[Vancouver B.C. – July 4, 2018] On Wednesday, July 4, the Ministry of Finance released an announcement regarding implementation of the new Employer Health Tax (EHT), as part of the next steps toward the elimination of Medical Services Plan (MSP) premiums and transition to the EHT. 

The announcement stated: “The transition to the EHT includes funding that ensures public services will not be impacted and that the cost pressure of the EHT has been fully funded in the government’s Budget 2018 fiscal planfor sectors including school districts.”

“This is great news for boards of education. We’re pleased to hear that the government has committed to covering the added EHT costs for school districts. Boards of education across the province have been clear that the cost of the EHT would have had impacts on our budgets,” said Gordon Swan, President of the B.C. School Trustees Association (BCSTA). “We are optimistic that this funding announcement will result in full cost neutrality for school district budgets.”

Earlier this year, the announcement of the new EHT was a point of concern for the BCSTA. Since then, the Association, as well as many boards of education, have been advocating for additional funding to cover the added costs of the tax.

“BCSTA looks forward to seeing the details on how funding will be allocated to individual school districts,” Swan said. “Any commitment by government that will fund the difference between the net costs of MSP and the EHT is a welcome one. We will continue to advocate for stable, predictable funding that ensures we can provide a high-quality public education for all students in B.C.”

Read the Ministry of Finance announcement:
Province releases Employer Health Tax implementation details

Read the EHT Tax Notice:
EHT Tax Notice