For Immediate Release: February 3, 2015
Ignite Fredericton Concerned Over Loss of NB’s Competitive Business Tax Advantage
FREDERICTON, N.B. – In the wake of the Provincial Budget unveiled Tuesday afternoon, Ignite Fredericton, the region’s economic development organization, worries about the decision to increase corporate income tax by two per cent.
While New Brunswick loses its competitive advantage of having the lowest corporate tax rate in Atlantic Canada at 12 per cent, the rise to 14 per cent puts the province on par with Newfoundland and Labrador. The two provinces now tie for the third highest corporate tax rate in Canada, behind Nova Scotia and Prince Edward Island at 16 per cent and Yukon at 15 per cent. The lowest corporate tax rate in British Columbia at 11 per cent.
New Brunswick also currently holds the highest personal income tax rates in the country, which can work at a disadvantage when trying to attract high earning executives and skilled talent to relocate.
“We commend the government’s efforts to reduce expenditures and create a sustainable fiscal plan for the province's future. We understand that this is a difficult situation, but we still assert that we need to retain our competitive advantage however we can. The increase in corporate tax will make it more difficult to attract companies to our region... and having a competitive tax rate historically played in our favour when attracting investment from within Canada and the global economy to consider New Brunswick for its competitive business case. It’s difficult to say where we will now stand, ”says Ignite Fredericton CEO Larry Shaw.
“Although we are disappointed in the increase to HST and corporate income tax, we remain optimistic that the Education and New Economy Fund announced at State of the Province will be strategically distributed to grow our workforce, create New Brunswick grown talent and support innovative initiatives such as coding in the school curriculum. Becoming the Smart Province is the direction we need to be moving in, ” says Shaw
About Ignite Fredericton
Mission: Fuelling Entrepreneurs for Economic Growth!
Vision: Startup Capital of Canada
As the community economic development organization, Ignite Fredericton provides free and confidential business counselling and tools to help entrepreneurs start, grow or locate a business. Core functions include:
- Supporting Entrepreneurs
- Attracting & Retaining Talent through Immigration, Student Retention & Repatriation.
- Strengthening the Economic Development Ecosystem through Strategic Initiatives and Partnerships.
Media Contact: Laurie Guthrie
Economic Development Specialist
- 30 -