Saskatchewan Budget 2023-24 provides some stability for small businesses
March 22, 2023 - The Canadian Federation of Independent Business (CFIB) appreciates that the 2023-24 Saskatchewan Budget includes no new taxes or cost increases, this will provide some stability for small businesses at a time when many are still feeling stressed and uncertain about the future of the economy.
The allocation of funding to agriculture and healthcare will also be welcomed by Saskatchewan small business owners. In response to a recent CFIB survey, 93 per cent of small businesses indicated that “addressing healthcare challenges” should be a top priority for the provincial government in 2023. Other priorities include:
- Addressing the rising costs of doing business (95%);
- Reducing the overall tax burden (88%); and
- Ensuring labour policies are reasonable for employers (87%).
“Given all the challenges small business owners are currently facing, namely heavy debt loads, skyrocketing inflation, increased input costs, and rising interest rates, we appreciate that this year’s budget includes no new costs for small businesses,” said Brianna Solberg, CFIB provincial affairs director. “However, with a projected $1 billion surplus, we would have liked to see further affordability measures announced such as holding the small business tax rate at 0% until at least 2024, or introducing plans to lower utility costs.”
CFIB recently met with Minister Harpauer and presented our member’s priorities for the 2023-24 Budget, including the recommendation that surplus money should be used to reduce the overall tax burden. Our members indicated they would use those tax savings to increase employee compensation, pay down their business debt, and lower or maintain their prices.
In 2020, the province reduced the small business tax rate from 2% to 0% with plans to increase to 1% on July 1, 2022 and back to 2% on July 1, 2023. Last summer, the 0% reduced tax rate was extended for an additional year with an increase to 1% now set to begin on July 1, 2023. The rate will further increase to the original tax rate of 2%, as of July 1, 2024.
CFIB has been calling on the Saskatchewan government to hold the rate at 0% until at least 2024 to give more small businesses the chance to recover.
“With only half of small businesses back to normal sales levels and the majority still staring down significant pandemic-related debt and stress, many small business owners will still require additional help in order to stay open,” concluded Solberg.
For media inquiries, please contact:
CFIB Legislative Affairs Director
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region (4,000 in SK). CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings.