Calgary Chamber of Commerce pushes province to eliminate small business tax

Calgary Chamber CEO, Deborah Yedlin addresses members in Calgary, Alta., Thursday, Dec. 15, 2022. (THE CANADIAN PRESS/Jeff McIntosh)

The Calgary Chamber of Commerce is calling on the province to help small businesses by eliminating small business tax.

In a Monday news release, the chamber said though inflation and interest rates are easing, more than two-thirds (69.9 per cent) of small and medium-sized businesses report cost concerns are their biggest obstacle right now.

"Small and medium-sized businesses are the backbone of Alberta’s economy. As these businesses play a pivotal role in local communities, their ability to thrive directly impacts job security, local spending and overall economic resilience," said Deborah Yedlin, Calgary Chamber of Commerce president and CEO.

Alberta's small business tax currently sits at two per cent, the same as British Columbia and the Northwest Territories.

Yedlin says that eliminating small business tax would not only promote affordability but also ensure Alberta remains a "leading destination for entrepreneurship and innovation."

The chamber estimates that eliminating the tax would cost the province $308 million in 2025/26, which represents 0.4 per cent of Alberta’s total revenues – while benefiting over 153,000 business across all regions of the province.

"With the provincial government forecasting a surplus of over $1 billion next year, the cost of eliminating the small business tax would amount to less than a quarter of that surplus, allowing the province to maintain its strong fiscal position," the chamber said in a news release.

The chamber estimates that eliminating the tax would save small businesses up to $10,000 a year.

Manitoba is the only province without a small business tax, while Yukon is the only territory.

Saskatchewan's small business tax is one percent, but is set to return to two per cent on July 1, 2025. Prince Edward Island also has a small business tax of one per cent.

Small business tax is 2.5 per cent in Newfoundland and Labrador, Nova Scotia and New Brunswick.

Ontario has the highest small business tax in Canada, sitting at 3.2 per cent.

CTV News has reached out to the province for comment, and will update this article when we hear back.