Sask. Party promises to reduce small business tax rate for next three years if re-elected
PRINCE ALBERT -- The Sask. Party promised that if re-elected, it will reduce the small business tax rate for the next three years to help rebuild the province’s economy and support small businesses, at an event Saturday.
“We know we need to give small businesses a break right now to ensure that they can stay on their feet and they can recover from this global pandemic,” said Leader Scott Moe at a campaign stop in Prince Albert.
In order to help small businesses recover and sustain operations, Moe said his party will reduce the small business tax rate from two per cent to zero beginning Oct. 1, 2020. The small business tax rate will then move to one per cent on July 1, 2022 and move back to its current two per cent on July 1, 2023.
“Small businesses are an important economic driver of growth in our communities here in Saskatchewan. They employ nearly 150,000 people in our province — about a quarter of Saskatchewan’s total work force... and right now, our small businesses need our support,” Moe said.
He said his party expects the temporary tax break to benefit about 31,000 small businesses in the province and provide about $6,100 in savings per small business.
"Whose dollars can then be reinvested in the business to help drive our recovery. It can be reinvested in our communities," Moe said.
The amount that small businesses can earn at the small business tax rate will remain at $600,000 — the highest threshold in Canada. It is expected to cost the government $189 million over four fiscal years, according to Moe.
“We believe the combination of a local small business tax rate and the highest small business income tax threshold makes Saskatchewan the very best place in Canada to start and to grow a business.”
SASK. PARTY FRIDAY ANNOUNCEMENTS
On Friday, the Sask. Party promised to raise the Sask. Advantage Scholarship from $500 to $750.
The Scholarship currently has a lifetime maximum of $2,000. The Sask. Party promises to raise the lifetime maximum to $3,000.