SASKATOON, SK: The Canadian Taxpayers Federation is calling on the Saskatchewan government to permanently reduce the small business tax rate to zero as the current reduction is set to expire at the end of June.

“Small businesses are still struggling to recover and rehire their neighbours so they need a tax hike about as much as a farmer needs hail,” said Gage Haubrich, Prairie Director of the CTF. “The government is already on course for a near record tax take this year and it doesn't need to tighten the screws on small businesses.”

In 2020, the government of Saskatchewan lowered the small business tax rate from two to zero percent.  On July 1, it will start to go back up.

Manitoba’s small business tax is zero percent. The Alberta NDP is pushing to eliminate small business taxes in that province.

The Saskatchewan government collected a record amount of taxes in 2022. Including collecting $1.1 billion more in corporate taxes than originally projected.

The three year savings to small businesses from the tax cut is about $189 million. Annually, that represents only eight per cent of the windfall corporate income tax the government collected last year.

Over the last three years, the average small business saved about $6,100 due to the tax cut.

“Small businesses create jobs and help drive the economy,” Haubrich said. “Instead of raising this tax and hurting business owners, the government needs to scrap it completely.”