The Canadian Taxpayers Federation (CTF) asked the Saskatchewan government to reverse the small business tax rate increase of 0.5% that started on July 1. .“The provincial government decided to get greedy instead of continuing to give small business owners a break,” said Gage Haubrich, Prairie director of the CTF. .“These extra taxes are a drop in the bucket for the government, but the extra cost could break a small business.”.In 2020, the small business tax rate in Saskatchewan was reduced from 2% to 0% by the Saskatchewan government. .However, on Canada Day, it was increased to 1%. .The government has announced its intention to further raise the tax rate to 2% next year..During the past three years, small businesses have typically saved approximately $6,100 due to the tax cut..In the previous year, the Saskatchewan government collected a record amount of over $1.9 billion in business taxes. .Reinstating the entire small business taxation would only contribute an additional 9% to business tax revenues..Small businesses in Saskatchewan provide employment for nearly 150,000 individuals. As a consequence of this small business tax increase, more than 31,000 small businesses in the province will experience a rise in their tax bill..Unlike several other provinces, the latest budget from the Saskatchewan government did not include any tax relief for businesses..The CTF says that small businesses are the backbone of Saskatchewan's economy and deserve tax relief, not additional taxes..“Other provinces are cutting taxes and that helps businesses cut down costs,” said Haubrich. .“Saskatchewan is going in the wrong direction by raising this tax, it needs to get rid of it for good.”
