Nova Scotia’s finance minister offers tax cut to small business

Small business tax will be reduced to 3% in January 2014.

March 27, 2013
by The Canadian Press

HALIFAX – Nova Scotia Finance Minister Maureen MacDonald delivered a small pre-budget gift today, revealing that her April 4 fiscal plan will reduce the small business tax by half a percentage point.

MacDonald says the tax will be reduced next January to 3%, continuing annual reductions that started in 2009 when the tax was 5%.

She says by next year, the rate will be the lowest its been in Nova Scotia in 20 years.

MacDonald also repeated the NDP government’s promise to table a balanced budget for the next fiscal year, though she declined to say whether there would be tax increases or spending cuts.

Liberal finance critic Diana Whalen says with the province facing a $277 million deficit in 2012-13, the government will be forced to resort to some kind of fiscal sleight-of-hand to balance the books.

©The Canadian Press