On April 27, 2017, Yukon’s new government delivered its first budget.
CFIB is pleased that the budget is balanced and will realize a surplus of $33 million. Small businesses in Yukon will be very pleased if the government can continue to manage the fiscal situation going forward to avoid future anticipated deficits. Controlling operating costs of large capital infrastructure investments will be key to ensuring balanced budgets going forward.
Fortunately for entrepreneurs, there was some much needed tax relief. The small business corporate income tax rate was lowered from three to two per cent, but it fell short of the election commitment to move the rate to zero this year. Small business owners will be very disappointed if this government abandons that commitment. There is also a reduction in the general corporate income tax rate, from 15 to 12 per cent.
The appointment of the Financial Advisory Panel is a welcome move to make recommendations regarding the territory’s financial future. CFIB will be monitoring the committee’s work to see if the small business perspective is reflected in there suggestions.
Entrepreneurs are looking for further detail on the introduction of a carbon tax and a red tape reduction plan. Designing the tax so that it is revenue neutral would be ideal if an exemption from the federal government can’t be secured. The commitment to reduce the regulatory burden is a high priority and should be acted up right away.
Overall this balanced budget keeps Yukon moving forward. CFIB will continue to lobby the government to continue to create the conditions for small businesses to grow and expand.
Have questions; please contact Business Resources at 1-888-234-2232.
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