Vernon’s VantageOne is praising a provincial government decision to retain the current tax rate on credit unions.

The deferral will allow the government to consider the impact of the tax increase within the context of its ongoing review of the two main pieces of legislation governing the credit union sector.

“We thank our local MLA Eric Foster and the provincial government for listening to B.C. credit unions and supporting greater choice and diversity in the financial services sector,” said Glenn Benischek, VantageOne chief executive officer.

“This means we will have more money to lend to our members and support local businesses and home owners.”

The government had planned to phase out a small business tax rate on credit unions and increase it incrementally over the next four years.

“The lower tax rate was put in place in recognition of the fact that credit unions, as B.C.’s cooperatively-owned financial sector, are in a unique position to reinvest capital back into the provincial economy, as well as support initiatives in local communities,” said Benischek.

“We look forward to meeting with the government to explain our position and help develop regulations and legislation that will allow us to grow.”