Sask Party promises to cut small business tax rate for small businesses

Saskatchewan Party leader Scott Moe promised to cut the small business tax rate if his party is re-elected.

“We know we need to give small businesses a break right now to ensure they can stay on their feet and recover from this global pandemic,” he said, speaking Saturday in Prince Albert.

“That’s why we’re reducing their taxes for the next three years.”

FULL COVERAGE: 2020 Saskatchewan Election

Moe said his new government would drop the small business tax rate from two per cent to zero per cent for two years. That cut would be retroactive to Oct. 1 of this year.

The rate would rise to one per cent on July 1, 2022, and return to two per cent a year later.

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Moe said the move would help entrepreneurs during the economic recovery following the COVID-19 pandemic.

He also said the timeline would still help the Sask Party balance the budget by 2024.

One Saskatoon café owner told Global News a tax cut wouldn’t help.

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“A lot of our revenue streams are quite down so a tax break, if we even make money this year, we’re not going to see much there,” said Jared Olsen, who opened Revolve Café about two years ago.

Olsen said he may face the same bleak accounting next year. He estimates he lost a quarter of his income this year because there are no events to cater.

The café owner added meaningful help would come in the form of assistance for daily costs, like utilities and rent, rather than a cost he only deals with once a year.

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Jason Aebig, the incoming CEO of the Saskatoon Chamber of Commerce, told Global News there is no one cure-all solution for every small business, but anything helped.

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“Any measure that allows a small business to owner or small business to shore up capital, retain more of their earnings and revenue at this critical time is absolutely necessary and welcomed,” he said.

In a statement, NDP leader Ryan Meili said the Sask Party’s plan “isn’t worth the paper it’s written on” and that families in the province deserve better than the “same old plan for cuts and austerity.”

© 2020 Global News, a division of Corus Entertainment Inc.

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