New Brunswick Small Business Tax Reduction Goes Into Effect
FREDERICTON–The provincial government plan to reduce the small business tax rate goes into effect today.
The rate is being reduced from four per cent to 3.5 per cent and is the second reduction since September 2014.
Premier Brian Gallant announced the plan during his visit to the Miramichi Chamber of Commerce on March 17, saying that the reduction will allow small businesses in the province to hire more people and invest in things that will make them more competitive.
“Our government committed to lowering the small business tax rate to 2.5 per cent by 2018, Finance Minister Roger Melanson said. “This is the second decrease since September 2014, bringing us another step closer to 2.5 per cent.”
Small businesses with capital assets up to $15 million will benefit from the tax reduction on the first $500,000 of corporate taxable income. Melanson said this will make it easier for the province’s small businesses to stay competitive in the global marketplace.
“Everyone has a role to play in moving New Brunswick forward,” Melanson said. “We need to invest more in our people, our small businesses and our communities. These changes are an important step to make that happen.”