Electrical Business

News
Manitoba eliminates small business tax


December 5, 2010
By Anthony Capkun

Finance minister Rosann Wowchuk announced December 1, 2010, that Manitoba is the first province in Canada to eliminate the small business tax. “Beginning today, [small businesses] will no longer have to pay the provincial small business tax [of 8%],” said Wowchuk.

“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% of which are considered to be small in nature. Small businesses create about one-third of all new jobs in the province.

“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,” added Peter Bjornson, entrepreneurship, training and trade minister.

Wowchuk said the government 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.

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.

CLICK HERE for information on tax incentives, trade assistance, employee training and more.