Released on June 26, 2007
July 1 will see the latest round of business tax reforms implemented, realizing a $155 million tax reduction for Saskatchewan businesses for 2007, up from the $95 million in tax reforms introduced last year."These reductions in business taxes paid to the province will mean that businesses will reinvest in their operations to expand and create jobs right here at home," Finance Minister Pat Atkinson said.
Last year the Government introduced year one of sweeping tax reforms, based on recommendations of an independent commission chaired by Jack Vicq.
Specific tax reductions this year include:
- Reducing the general Corporate Capital Tax rate on existing capital from 0.3 per cent to 0.15 per cent on July 1, 2007 and fully eliminating it on July 1, 2008;
- Reducing the general Corporate Income Tax rate from 14 per cent to 13 per cent on July 1, 2007 and reducing it further to 12 per cent on July 1, 2008; and
- Increasing the small business threshold from $400,000 to $450,000 on July 1, 2007, and increasing it further to $500,000 on July 1, 2008.
As well, on January 1, 2007, the small business tax rate was reduced from five per cent to 4.5 per cent.
"These reforms are improving Saskatchewan's economic climate, encouraging further economic development and diversification and expanding employment opportunities for Saskatchewan residents," Atkinson said.
"The reduction in Saskatchewan's key business tax rates significantly improves our competitive standing and is having a positive impact on investment and job creation. Saskatchewan is now perceived as a great place to do business, by both local businesses and those interested in moving to the province."
By the end of the four-year implementation strategy, businesses will realize $190 million annually in tax savings as a result of business tax reforms. Saskatchewan people and businesses will also realize $340 million in Provincial Sales Tax (PST) savings a year, as a result of the two-point rate cut introduced last fall.
"There are great things happening in Saskatchewan - the economy is robust, we are enjoying record employment levels, and these business tax reforms will ensure that Saskatchewan continues to be a great place to live, work and raise a family," Atkinson said. "Our Government is making things better for Saskatchewan."
-30-
For more information, contact:
Lorri Thacyk
Finance
Regina
Phone: 306-787-6605
Email: lthacyk@finance.gov.sk.ca