Saskatchewan Chamber of Commerce welcomes Sask Party business policy announcements

Small Business Tax Rate to stay at 1%, $285,000 for Young Entrepreneur Bursary, Small Business Investment Tax Credit

October 15, 2024, 11:09 am
Ashley Bochek

The Saskatchewan Chamber of Commerce is welcoming three announcements geared toward Saskatchewan businesses made by the Saskatchewan Party last week.

The party announced three measures:
• A re-elected Saskatchewan Party government will make the reduced one per cent small business tax rate permanent,

• A re-elected Saskatchewan Party government will invest $285,000 annually to youth entrepreneurship, with grants distributed through local Chambers of Commerce, and

• A re-elected Saskatchewan Party government will work with Chambers of Commerce to develop a new tax credit to encourage investment in small businesses. The proposal that went forward from the Chambers of Commerce was for a Small and Medium Size Enterprise Investment Tax Credit that would provide a 50 per cent tax credit for people who invest in a Saskatchewan SME with 50 employees or fewer.

“We know that small businesses create many jobs in Saskatchewan. That’s why today, I am announcing that the small business tax rate that our government reduced as we emerged from the pandemic will remain at the reduced rate of one per cent,” Premier Scott Moe said Friday.

The small business tax rate was scheduled to return to two per cent on July 1, 2025. A re-elected Saskatchewan Party government will keep the rate at one per cent.

Moe said if re-elected, the Saskatchewan Party government will work with the Saskatchewan Chambers of Commerce to develop a new small and medium-sized enterprises (SMEs) tax credit to encourage small business development and create jobs.

“A Saskatchewan Party government will also create a new Saskatchewan Young Entrepreneur Bursary,” Moe said. “We will provide an annual grant of $285,000 to the Saskatchewan Chamber for local Chambers throughout the province to use to provide $5,000 bursaries to local young entrepreneurs for business development.”

Prabha Ramaswamy, the CEO of Saskatchewan Chamber of Commerce, has commented on the policies and is excited for the future of entrepreneurship in Saskatchewan.

“We very much welcome the proposal from both parties to keep the small business tax at 1%,” Ramaswamy said.

She said the young entrepreneur bursary would be welcome.

“A young entrepreneur bursary would support young entrepreneurs in starting a business and accessing mentorship, which is critical to business sustainability and growth,” said Ramaswamy. “Such incentives will also promote retention of professional and entrepreneurs in our province.”

She said the investment tax credit for small businesses would make a difference in communities across the province.

“Small business is big business in our province, with 99% of businesses being classified as small business,” she said.

“The proposed SME tax incentives for businesses under 50 employees will not only boost investments but will fuel growth in our economy. It will provide an opportunity for businesses to access capital that is vital to grow and scale,” said Ramaswamy.

Moosomin Chamber meeting October 22
The new incentives will be discussed at the October 22 Moosomin Chamber of Commerce meeting. Also at the meeting will be discussion of Spookarama, introduction of a new business, and discussion of the Tim Hortons Holiday Smile Cookie campaign. The meeting is Tuesday October 22 at 11:45 am at the Canalta Hotel in Moosomin.