CHARLOTTETOWN, PE – In advance of the 2018 provincial budget, the Greater Charlottetown Area Chamber of Commerce has recommended government lower the small business tax rate to 2.5 per cent in 2018 and to 2 per cent in 2019 making PEI’s rate the lowest in Atlantic Canada.
“Currently at 4.5 per cent, PEI’s small business tax is the second-highest in the country next to the province of Quebec,” said Greater Charlottetown Area Chamber of Commerce President, Rory Francis. “Lowering the small business tax to 2 per cent will help improve the competitiveness of existing small businesses while making PEI more attractive to potential new businesses and entrepreneurs.”
Historically, the Province’s financial statements have shown no negative impact on provincial revenues when the small business tax rate is lowered. In some cases, tax revenues from businesses have increased in the province at times when the small business tax was at its lowest. The Chamber suggests that cutting the small business tax rate would enable the growth of small businesses and maintain government revenue sources.
“The Province is heading into what we hope is a new, long-term era of balanced budgets and our economy is performing well,” said Francis. “This is very positive, and we encourage our provincial government to consider this an opportunity to help small businesses in PEI grow, create jobs and invest in new products and technologies while remaining competitive.”
The Chamber has presented their recommendation to lower the small business tax to the Minister of Finance, the Official Opposition Caucus and Office of the Third Party. The complete budget presentation titled Supporting Economic Growth through a Competitive Business Environment can be found at www.charlottetownchamber.com/reports-policy-submissions
“The Chamber is proud to support a growing business community and it’s our role to recommend ways to not only maintain, but improve the existing economic climate,” said Francis. “It is in this spirit that we urge government to support growth and competitiveness for Island businesses by adopting this recommendation.”
The Greater Charlottetown Area Chamber of Commerce serves as the “Voice of Business” on economic issues for close to 1000 members, representing more than 18,000 employees in small, medium and large enterprises in the capital region.
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Media Contact:
Penny Walsh McGuire
Executive Director
Greater Charlottetown Area Chamber of Commerce
902-628-2000 x 227
www.charlottetownchamber.com
Twitter: @GCACCBuzz