Released on April 6, 2006
Saskatchewan Finance Minister Andrew Thomson today announced the provincial government will introduce sweeping cuts to provincial business taxes.The cuts will boost capital investment, enhance business opportunities, create jobs for Saskatchewan youth and are part of the Government of Saskatchewan's Action Plan for the Economy.
"Our Government is making the most significant business tax cuts in Saskatchewan's history," Thomson said. "Our new corporate tax structure will be one of the most competitive and business-friendly in Canada, ultimately leading to more job creation and employment opportunities for Saskatchewan's youth."
In the spring of 2005, Government commissioned a Business Tax Review Committee (BTRC) to independently examine the impact of Saskatchewan's business taxes on the Province's economic and business climate. The committee was chaired by Jack Vicq, with Vice-Chair Charlie Baldock and Cheryl Shepherd completing the three-person panel. The BTRC undertook extensive consultations and analysis in preparing the final report delivered to government in November 2005.
"I want to thank the committee members for the hard work they put into this report," Thomson said. "The implementation of their recommendations will provide the foundation to transform our provincial economy."
Highlights include:
• Eliminate the general Corporate Capital Tax (CCT) on existing capital investments by July 1st, 2008, except for provincial Crown corporations currently taxable;
• Eliminate the general CCT on new capital investments in Saskatchewan on July 1st, 2006;
• Reduce CCT Resource Surcharge rates beginning July 1st, 2006;
• Reduce the Corporate Income Tax (CIT) rate from 17 to 12 per cent by July 1st, 2008;
• Increase the small business threshold from $300,000 to $500,000 by July 1st, 2008; and
• Immediately convert the non-refundable Investment Tax Credit (ITC) for Manufacturing and Processing into a refundable tax credit and extend the carry-forward for unused ITCs previously earned to 10 years.
The business tax cuts are estimated to have a $95 million impact for 2006-07, increasing to $155 million the following fiscal year and $190 million annually by the end of the four-year implementation strategy.
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For More Information, Contact:
| Vanessa Gooliaff Beaupre Finance Regina Phone: (306) 787-8109 Cell: (306)535-0948 |