Saskatchewan NDP commits to freeze the small business tax

NDP candidate Aleana Young speaks at a campaign stop in Saskatoon on Oct. 8, 2024. (Stacey Hein / CTV News)

NDP candidate Aleana Young was in Saskatoon on Tuesday to pitch the latest campaign commitment from the Saskatchewan New Democratic Party.

If elected, she says the NDP would freeze the small business tax.

Young said an NDP government would freeze the tax to help small businesses catch up and get ahead. The tax currently sits at one per cent until June 30, 2025.

“A Saskatchewan NDP government will keep that small business tax freeze and keep it frozen over our mandate for four years. We're going to make sure that small businesses can catch up, stay open, stay in business, and get ahead,” she said.

Young cited Statistics Canada showing that 114 businesses have closed in Saskatchewan between June 2023 and June 2024.

She said an NDP government would also establish a roundtable for employers and workers across sectors to come together and create a plan to address labour force challenges.

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Young said the NDP is listening to small business owners, while Saskatchewan Party leader Scott Moe plans to double the small business tax next year.

In a statement to CTV News, a spokesperson with the Sask. Party said Young’s statement is a “mischaracterization.”

The Sask. Party says it temporarily suspended the small business income tax rate of two per cent in fall 2020 to support businesses during the pandemic.

It says the rate was scheduled to gradually return to two per cent, beginning at one per cent on July 1, 2023.

“It was then set to return to two per cent on July 1, 2024, however in this year’s budget, the temporary reduction was extended once again and is scheduled to remain at one per cent until June 30, 2025,” the party said in the statement.

The Sask. Party plans to release its small business platform later this week.