There’s a common pattern in every survey about your priorities: the tax burden is consistently ranked as the most pressing issue facing small businesses.
This is a concern that we raise with all levels of government—and we’re starting to see results.
New commission to find ways to improve tax fairness
In response to our call for a better system, the provincial government formed a Tax Competitiveness Commission in 2016, with a mandate to find ways to improve B.C.’s tax system.
The B.C. tax system has some serious competitiveness issues; this is something we hear frequently from you and our members. In September 2016, a survey showed some of your key concerns include the Provincial Sales Tax (PST), the corporate small business tax, and the high and unfair level of property tax placed on small businesses.
Thanks to your input, we were able to present the Tax Commission with concrete ways to improve the tax system. We also shared our recommendations with the Finance Minister ahead of the budget.
Province taking steps to ease your corporate tax, PST burden
Following the Commission’s findings, the B.C. government took some action to fix the inequities of the provincial tax system. Since our meeting, the B.C. government has now:
- Phased in a tax credit for PST paid on all business inputs
- Started to phase out PST paid by businesses on electricity (to be finished by April 1, 2019).
- Reduce the provincial corporate small business tax rate (2.0% as of April 1, 2017)
We will continue to push the government on your priorities, to ensure B.C. continues to promote economic growth and opportunity for small business to flourish.