The Calgary Chamber of Commerce is calling on the province to help small businesses by eliminating small business tax.
In a news release on Monday, the chamber said though inflation and interest rates are easing, almost 70 per cent of small and medium-sized businesses report cost concerns are their biggest obstacle right now.
Calgary Chamber of Commerce president and CEO, Deborah Yedlin, said “Small and medium-sized businesses are the backbone of Alberta’s economy. As these businesses play a pivotal role in local communities, their ability to thrive directly impacts job security, local spending and overall economic resilience,”
Alberta’s small business tax currently sits at two per cent, the same as British Columbia and the Northwest Territories.
The chamber estimates that eliminating the tax would cost the province $308 million in 2025/26, which represents 0.4 per cent of Alberta’s total revenues – while benefiting over 153,000 business across all regions of the province, and save each on up to $10,000 a year.
Manitoba is the only province without a small business tax, while Yukon is the only territory.
Saskatchewan’s small business tax is one percent, but is set to return to two per cent on July 1, 2025. Prince Edward Island also has a small business tax of one per cent.
Small business tax is 2.5 per cent in Newfoundland and Labrador, Nova Scotia and New Brunswick.
Ontario has the highest small business tax in Canada, sitting at 3.2 per cent.
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