Chamber welcomes further reduction to small business tax; increase to basic personal exemption
CHARLOTTETOWN – The Greater Charlottetown Area Chamber of Commerce is applauding a commitment by the provincial government to reduce the small business tax rate and increase the basic personal tax exemption. The Chamber has long advocated for both and welcomes this as an important win for employers and the Island’s workforce.
“Today’s announcement signals that provincial government recognizes the importance of reducing the tax burden on businesses and Island workers,” said Chamber CEO, Penny Walsh-McGuire. “We encourage government to continue to support P.E.I.’s business environment and competitiveness, which will allow employers to reinvest in their business and their employees.”
The small business tax reduction will bring the P.E.I. 2019 rate to 3.5%. The Chamber recommends that government continue to reduce the small business tax rate with a target of 2%, which would make it the lowest in Atlantic Canada.
The 2018 basic personal exemption increase to $9,160 is a significant move to help improve the financial situation for employees, particularly those in minimum wage jobs. The Chamber continues to calls for government to increase the basic personal exemption amount to the Canadian average, which is approximately $12,000, and index it to the rate of inflation going forward.
“I’m proud, that with the support of our members, the Chamber has made progress in advocating for a reduction of the small business tax rate and increases to the basic personal tax exemption,” said Walsh-McGuire. “While we know there is always room to improve the environment for employers and employees, today’s announcement is certainly another step in the right direction.”
The Chamber presented its 2018 budget recommendations to the Minister of Finance, the Official Opposition Caucus and the Office of the Third Party in the winter of 2018. The complete budget presentation titled Supporting Economic Growth through a Competitive Business Environment can be found at www.charlottetownchamber.com/reports-policy-submissions