B.C. government to scrap planned 4% MSP increase

The provincial governmentwon'tbe increasing MSP premiums by 4 per cent next year as it originally announced.

Finance Minister Mike deJongis expected to make the announcement atthe province's quarterly financial update on Thursday morning.

The province says a stronger fiscal quarter has given it room to cancel the increase, whichwould have brought in more than $100 million.

In February's provincial budget,De Jong announced changes to the system, effective for next year, which would have increased the base rate from $75 to $78 a month.

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It also announced plans to stop charging parents with kids 18 and under the health premiums, and topro-rate the amount people making between $22,000 and $42,000 have to pay.Those announced changes will stay in effect.

Last quarter the province said revenues from property transfer taxes were almost $500 million more than expected.

With files from Richard Zussman