FREDERICTON – Small business income taxes in New Brunswick will drop by half a percentage point to four per cent, starting Jan. 1.
Premier Brian Gallant says lowering the tax rate will reduce the costs for small businesses and make them more competitive.
The Liberals promised during the recent election campaign to drop the tax rate to 2.5 per cent by 2018.
Gallant says that would give New Brunswick’s small businesses the lowest income tax rate east of Manitoba.
Denis Robichaud, the New Brunswick director of provincial affairs for the Canadian Federation of Independent Business, says the tax cut is welcome news and will help companies create or maintain jobs.
However, Robichaud says the impact could be offset by a plan by the Liberals to raise the minimum wage by a dollar to $11 an hour by 2017.
The small business tax rate is applied to any business with taxable income of less than $500,000 per year.
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