Cutting Alberta’s corporate tax rate will juice the province’s economy and put Alberta on the road to recovery, predicts the Red Deer & District Chamber of Commerce.
Premier Jason Kenney announced Monday he was fast-tracking a plan to reduce the corporate tax rate to eight per cent from 10 per cent. The new rate will kick in on Wednesday, more than a year ahead of schedule.
Kenney reduced the tax rate from 12 per cent when he took power last year. At eight per cent, the corporate tax rate will be four points lower than B.C. and further cements the province’s position as having the lowest taxes in the country.
The province also intends to pump $10 billion into infrastructure, offer grants to lure high-tech companies and investment, and step up efforts to lure firms and jobs from other provinces.
Chamber of commerce CEO Rick More said it is “very gratifying” the province has been listening to the concerns of small business.
Surveys by the Red Deer chamber and the Alberta Chambers of Commerce showed widespread support in the business community for easing its tax burden.
“To accelerate this initiative by 18 months to eight per cent shows the support needed, especially after these past four months of COVID-19. Alberta will be the place for investors to turn their attention towards.”
More said the measures will go a long way to restoring investor confidence in the region and providing a broad-based competitive tax structure that facilitates growth and investment.