Skip to main content

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

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.

In a statement sent to CTV News, Alberta's Jobs, Economy and Trade Minister Matt Jones said the province is "currently evaluating" the chamber's recommendations.

"The government understands the critical role these enterprises play in our communities and is dedicated to ensuring their success both now and into the future," he said.

Jones pointed to Alberta's eight per cent corporate tax rate – the lowest in Canada – and the lack of provincial sales tax as two measures that help to contribute to a competitive landscape that encourages entrepreneurship and innovation.

"Our government is actively working to support small businesses through a range of programs and initiatives designed to alleviate barriers to success, such as Biz Connect, Business Link and Futurpreneur," Jones said.

"Alberta already offers one of the most business-friendly tax regimes in North America, however we are constantly evaluating expanding our supports.

Jones said he looks forward to collaborating with the Calgary Chamber of Commerce and the broader business community to address the challenges facing small businesses.

CTVNews.ca Top Stories

N.S. teen charged for allegedly making threats to school

A Nova Scotia teen is facing numerous charges related to a complex swatting investigation. On Oct. 25, Nova Scotia RCMP, with the assistance of the Ontario Provincial Police, arrested a 14-year-old male at his home in Bridgewater, N.S.

Stay Connected