Manitoba Small Business Tax Elimination

Provincial Government Announces the Elimination of the Small Business Tax. Left to Right, Janine Carmichael, Director of Manitoba Affairs for the Canadian Federation of Business, Rosann Wowchuk, Minister of Finance, Peter Bjornson, Minister of Entrepreneurship, Training and Trade and Derrick Godfrey, owner of The Cupcake Corner in the background

Manitoba First in Canada to End Tax: Wowchuk

Finance Minister Rosann Wowchuk today announced Manitoba is the first province in Canada to eliminate the small business tax.

 

“This is a very significant day for small business owners in Manitoba.  Beginning today, they will no longer have to pay the provincial small business tax,” said Wowchuk. “When we entered office, small business was at a significant disadvantage, as it faced a tax of eight per cent, the second highest in the country. Today, we have fulfilled our promise to eliminate the tax.”

 

“Manitoba has developed an impressive reputation for innovation, quality, reliability and sustainability in the national and global marketplaces,” said Entrepreneurship, Training and Trade Minister Peter Bjornson. “As a government, we recognize the importance of small and medium-sized businesses to our economy and are continuously making it easier and better to do business in Manitoba.”

 

“This is great news for small business in Manitoba,” said Janine Carmichael, Manitoba director for the Canadian Federation of Independent Business.  “Small businesses are the cornerstone of our economy and our community.”

 

Wowchuk noted there are 103,192 businesses in Manitoba, 97 per cent of which are considered to be small in nature. Small businesses create about one-third of all new jobs in the province. 

 

“Small businesses invest in our economy, grow our communities, support our families and help keep Manitoba’s unemployment rate one of the lowest in the country,” said Wowchuk.

 

The minister said government is proud of Manitoba’s entrepreneurs and small businesses, and will continue to develop and enhance programs and services to support business including:  

·         providing active leadership to develop and maintain a skilled labour force; 

·         engaging all stakeholders (employers, educational institutions, community groups and workers) to develop training opportunities that support and expand Manitoba’s economy;  

·         working with private industry and entrepreneurs to meet mutual economic goals; and  

·         encouraging and supporting local, national and international trade opportunities.  

“Because of our strong and stable economy, Manitoba is one of the most attractive locations for investment in Canada,” said Wowchuk.  “A major reason for our stability is the innovative and resilient small businesses that make up the bulk of our economy, both in our urban centres and across Manitoba.

 

Manitoba businesses will save a total of more than $422 million annually when the tax measures in Budget 2010 are combined with the tax cuts previously delivered by the government, the minister said.

 

The minister also announced the general Corporation Capital Tax continues to be on track for elimination by the end of 2010. It was already eliminated for manufacturers and processors in 2008, providing saving of $25 million annually. 

 

Information about tax incentives, trade assistance, employee training and more information can be found at www.gov.mb.ca/business.

 

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