Innovation, Business and Rural Development
March 21, 2012
Support for Small Business Remains Strong
In response to a private members’ motion today to lower the small business tax rate, the Provincial Government reiterated its support for all businesses throughout Newfoundland and Labrador and indicated it would consider the matter when it makes fiscal sense to do so.
“We have significantly lowered the tax burden on all businesses in the province over the past several years,” said the Honourable Tom Marshall, Minister of Finance and President of Treasury Board. “Specifically for small businesses, our efforts have resulted in Newfoundland and Labrador currently having the lowest small business tax rate of all the provinces east of Manitoba, with the exception of Prince Edward Island. It is important that we consider any tax cut with an eye to affordability to ensure that we can continue to offer vital programs and services.”
The small business tax rate was set at five per cent in 1983 and remained unchanged until 2010 when the Government of Newfoundland and Labrador lowered it to four per cent. Small businesses also benefit from increases in the payroll tax threshold that currently sees only 845 of the province’s estimated 23,000 employers paying this tax.
There are other ways that the province helps business noted the Honourable Keith Hutchings, Minister of Innovation, Business and Rural Development.
“Small businesses are the engines that drive Newfoundland and Labrador’s economy,” said Minister Hutchings. “Their growth supports the sustainable social and economic development of the province. Recognizing their importance, under the leadership of Premier Dunderdale, we are working with businesses to pursue new opportunities and company expansion. Greater success of small businesses will strategically position the province for the future.”
Since 2005 the Department of Innovation, Business and Rural Development has invested in excess of $135 million in economic and business development initiatives. This includes close to $80 million from established business development programs, as well as one-off investments and support for contact centres. Of this collective investment, more than 70 per cent has been made in rural communities.
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Media contacts:
| Luke Joyce Director of Communications Department of Finance 709-729-6830, 725-4165 lukejoyce@gov.nl.ca |
Scott Barfoot Director of Communications Department of Innovation, Business and Rural Development 709-729-4570, 690-6290 scottbarfoot@gov.nl.ca |
2012 03 21 5:00 p.m.