SUMMERSIDE, PE – June 26, 2019 The reduction of the small business tax by 0.5% as announced in yesterday’s provincial budget is a step in the right direction, says the Greater Summerside Chamber of Commerce. However, the government did not achieve its election promise to lower the small business tax rate to one per cent by January 2020.
“We recognize that compromise is necessary, however we would have liked to see a larger decrease,” said Greater Summerside Chamber of Commerce’s Executive Director, Tara Maddix. “Somewhere perhaps in the middle of the road. As always, we look forward to working with all parties and other Island Chambers to support future small business tax rate reductions and other ways to improve the Island economy.”
The Greater Summerside Chamber of Commerce welcomed the announcement in yesterday’s budget of an investment in the PEI Partnership for Growth. “The PEI Partnership for Growth (PFG) is comprised of 21 business organizations and industry associations, who have come together with a shared vision for our economic future,” said Maddix. “We are pleased to see an elected official, Sidney MacEwan, has been assigned to our partnership to help develop this economic plan.”
Some other highlights of the 2019 Provincial Budget:
- A budget surplus of $1.8 million compared to $13.8 million surplus for 20182019.
- Net debt forecast to reach $2.24 billion in 20192020 up from $2.18 billion in 2018-2019.
- $1.6 million to support nurse practitioners added in the past year.
- An increase of $19.2 million in spending on K12 and early years education.
- New frontline staffing positions in schools will include 32 teachers and 42 educational assistant positions.
- Holland College, UPEI and College de L’Ile will receive a two per cent increase in operating funding.
- The basic personal tax amount will increase to $10,000 as of Jan. 1, 2020.
- The low income threshold amount for personal income tax will increase from $17,000 to $18,000 effective Jan. 1, 2020.
- $5.7 million in additional spending into agriculture insurance rates and premiums.
- $10 million in incentives for fuel switching.
- A $500,000 incentive program for solar power projects.