A planned tax cut for Ontario’s small businesses is expected to save them more than one billion dollars.
The province intends to cut the small business corporate income tax (CIT) from 3.2% to 2.2% over the next three years.
The measure was announced in the provincial budget.
Associate Minister of Small Business, Nina Tangri, says the cut will allow businesses to reinvest in themselves and project jobs.
“Ontario’s small businesses are the driving force behind our economy, employing more than 2.5 million people,” states Tangri in a release.
“We continue to support small businesses in these times of economic turbulence by providing additional tax relief that will allow them to reinvest in their companies and workers so they can scale-up, reach new customers and grow.”
The tax cut is expected to provide more than 375,000 Ontario small businesses with up to $5,000 in tax relief every year.
The province also intends to provide further relief through federal measures that allow businesses to accelerate the write-off of a broad range of capital investments, including equipment and other assets, saving an estimated $3.5 billion in additional Ontario income tax relief over four years.
“Small businesses are the backbone of Ontario’s economy, and our government is taking action to help them grow, invest and create good-paying jobs,” states Peter Bethlenfalvy, Minister of Finance.
“(The) tax cut will put more money back into the hands of local entrepreneurs in communities. . .across Ontario, giving them the flexibility to expand, hire and compete in an increasingly uncertain global environment.”
