Expected savings of $422 million annually when combined with other tax cuts
Manitoba has become the first province in Canada to eliminate the small business tax, hoping to boost the advantages of almost all (97 per cent) of the 103,192 businesses in Manitoba.
“When we entered office, small business was at a significant disadvantage, as it faced a tax of eight per cent, the second highest in the country. Today, we have fulfilled our promise to eliminate the tax,” said Finance Minister Rosann Wowchuk. “Small businesses invest in our economy, grow our communities, support our families and help keep Manitoba’s unemployment rate one of the lowest in the country.”
Manitoba businesses will save a total of more than $422 million annually when the tax measures in Budget 2010 are combined with the tax cuts previously delivered by the government, she said.
The Manitoba government recognizes the importance of small and medium-sized businesses to its economy and is making it easier and better to do business in Manitoba, said Entrepreneurship, Training and Trade Minister Peter Bjornson.
“Manitoba has developed an impressive reputation for innovation, quality, reliability and sustainability in the national and global marketplaces.”
Manitoba will continue to develop and enhance programs and services to support business including:
• providing active leadership to develop and maintain a skilled labour force
• engaging all stakeholders (employers, educational institutions, community groups and workers) to develop training opportunities that support and expand Manitoba’s economy
• working with private industry and entrepreneurs to meet mutual economic goals
• encouraging and supporting local, national and international trade opportunities.
“A major reason for our stability is the innovative and resilient small businesses that make up the bulk of our economy, both in our urban centres and across Manitoba,” said Wowchuk.
The general corporation capital tax is also expected to be eliminated by the end of 2010, having already been eliminated for manufacturers and processors in 2008.
