Charlottetown, April 6, 2018 – Two key requests from the Canadian Federation of Independent Business (CFIB) are being included in Prince Edward Island’s 2018 Provincial Budget. A small business tax cut and a new Small Business Investment Grant will provide additional money for entrepreneurs to reinvest in the growth of their businesses.
“It is good to see government recognize the increasing costs of doing business and providing some relief,” said Erin McGrath-Gaudet, CFIB’s director of provincial affairs, P.E.I. “With increases coming to CPP premiums and discussion of carbon pricing, the small business rate decrease will help offset some of those added costs.”
The small business tax rate will decrease by half a percentage point this year as part of what the government is calling a “multi-year commitment to strengthen our competitive advantage.” While this is good news, CFIB will continue to press government for additional reductions.
CFIB was also pleased to see government increase the basic personal exemption which has long been a priority for small businesses and benefits all Island taxpayers.
While there was much positive news in the budget estimates, the rate at which program spending is increasing continues to be a concern.
“It often proves easy to balance a budget with a strong economy because revenues are growing faster than spending. Problem is that it is hard then to sustain those spending levels when the economy is struggling and we end up back in deficit territory,” said McGrath-Gaudet.
For more information or to request an interview, please contact Erin McGrath-Gaudet at 902-393-6094 or [email protected].
CFIB is Canada’s largest business association representing 110,000 small- and medium-size businesses in every sector and every region of the country including 1,000 members in Prince Edward Island.