Released on May 10, 2006
The next step in Saskatchewan's sweeping business tax cuts begins today with a national information campaign to ensure everyone outside the province knows about the good-news-for-business measures introduced in this year's Saskatchewan Budget."These are the most significant business tax cuts in Saskatchewan's history and they are going to get a lot of positive attention from Canada's business community," Industry and Resources Minister Eric Cline said. "Promoting Saskatchewan's new, sharper competitive edge will ensure the business tax reform package reaches its full potential."
The $350,000 campaign begins with ads in major Canadian newspapers and business magazines. In addition, a targeted brochure is being sent to over 15,000 business decision-makers across the country. Minister Cline will also take the message on the road to energy sector executives in Alberta in June.
"The new tax initiatives show good faith by the Saskatchewan government that business expansion is valued," Baytex Energy Trust's Chief Operating Officer and Canadian Association of Petroleum Producers' Saskatchewan Executive Policy Group Chair Anthony Marino said. "These measures enhance Saskatchewan's competitive position and I would expect to see substantial new investment as a result of the changes."
"Business tax reform represents an important step in Saskatchewan's economic growth and opportunities," Saskatchewan Chamber of Commerce President Ted Hillstead said. "These tax changes build on our strengths, our skilled workforce, our low cost of living and our reasonable land costs."
The cuts to corporate capital tax and corporate income tax amount to $95.3 million this year alone. By phasing in extensive reductions over four years, Saskatchewan is working its way up to $190 million in annual business tax reductions.
Saskatchewan's Business Tax Reform initiatives begin July 1st, 2006 and include:
- Eliminating the general Corporate Capital Tax (CCT) on existing capital investments, to be completed by July 1st, 2008.
- Exempting new eligible capital investments from the CCT;
- Reducing the CCT Resource Surcharge rates; and
- Reducing the general Corporate Income Tax rate from 17 per cent to 12 per cent, to be completed by July 1st, 2008.
Read more about Saskatchewan's competitive business environment online at www.thinksask.ca.
Attached is a copy of the advertisement appearing in national daily papers.
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For More Information, Contact:
| Bob Ellis Industry and Resources Regina Phone: (306) 787-1691 |