The Saskatchewan small business tax rate couldn’t be lower. A fact that is changing as the pandemic measures continue to phase out.
To help during the pandemic, the province cut the tax rate from two percent to zero. Now it is gradually being reintroduced.
“The government originally rolled it out in 2020. She said it was a temporary measure to alleviate some of the problems of the pandemic,” Gage Gaubrich of the Canadian Taxpayers Federation told CTV News.
“However, we believe the government has gotten something right here and is helping small businesses and there is no reason why they should deviate from good policy.”
The tax will be reinstated at 1 percent in July this year and returned to the full pre-pandemic level of 2 percent next July.
“Inflation was high last year. It increases costs for businesses and the last thing small business owners need is more costs,” Gaubrich said.
“It’s a drop in the ocean for government, but it could be crucial for these small businesses.”
The NDP opposition agrees that now is not the time to levy taxes on small businesses.
Opposition MLA Aleana Young speaks from experience as a small business owner.
“My electricity bills at my store have almost doubled,” she explained.
“Transportation costs, I think the fuel surcharge on my transportation has been close to 70 percent lately and I’ve seen five rate increases since January 1st that you can’t just reverse and pass on to consumers.”
Even at a full 2 percent, the small business tax rate is well below the 12 percent that many larger companies pay.
The province says the $600,000 income threshold to qualify as a small business owner is the best in the country.
“Evil alcohol lover. Twitter junkie. Future teen idol. Reader. Food aficionado. Introvert. Coffee evangelist. Typical bacon enthusiast.”