SK: New tax reforms in the province will reduce the amount of taxes businesses pay by $155 million in 2007.

As a result of findings by an independent commission, the province began the reforms last year, and reduced taxes for businesses by $95 million.

“These reductions in business taxes paid to the province will mean that businesses will reinvest in their operations to expand and create jobs right here at home," Finance Minister Pat Atkinson said.

The government of Saskatchewan highlights these reductions for 2007:

• Reducing the general Corporate Capital Tax rate on existing capital from 0.3 per cent to 0.15 per cent on July 1, 2007 and fully eliminating it on July 1, 2008;
• Reducing the general Corporate Income Tax rate from 14 per cent to 13 per cent on July 1, 2007 and reducing it further to 12 per cent on July 1, 2008; and
• Increasing the small business threshold from $400,000 to $450,000 on July 1, 2007, and increasing it further to $500,000 on July 1, 2008;
• As well, on January 1, 2007, the small business tax rate was reduced from five per cent to 4.5 per cent.

"These reforms are improving Saskatchewan's economic climate, encouraging further economic development and diversification and expanding employment opportunities for Saskatchewan residents," Atkinson said.

The province believes that at the end of the four-year plan, local businesses will have saved over $190 million annually because of the reforms. A two point cut in the Provincial Sales Tax (PST) was introduced last year and will amount to another $340 million savings.

"These business tax reforms will ensure that Saskatchewan continues to be a great place to live, work and raise a family," Atkinson said.

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