Latest news with #FrédéricGionet
Yahoo
5 days ago
- Business
- Yahoo
Tax changes for P.E.I. businesses are a small step forward, says CFIB
The Canadian Federation of Independent Business is welcoming P.E.I.'s tax changes for businesses but believes more can be done to support local owners and help them stay competitive. "Definitely it's a step in the right direction, but it's just a small incremental step," said Frédéric Gionet, the director of Legislative Affairs for the CFIB in Atlantic Canada, said of the measure that came into effect a week ago. P.E.I. has two types of tax rates for businesses: the small-business tax rate and the corporate tax rate. The general tax rate for businesses has now dropped from 16 to 15 per cent, and although the small-business tax rate is staying at 1 per cent, the income threshold has gone up $100,000 to $600,000. It means "every business operating in the province can claim more of their income under the lower rate of business tax," according to a news release from the Department of Finance. Changes in effect July 1 The changes, initially announced in the provincial operating budget, came into effect on July 1, 2025. The province estimates it will save businesses more than $9 million. "We've been asking the P.E.I. government for years to increase the small-business tax rate threshold," said Gionet. "We were asking for $700,000 and indexed inflation. So we'll keep working on that for sure, but that does help." When it comes to the small-business tax rate, P.E.I. has one of the lowest in the country, while also now boasting one of the highest income thresholds. The province's corporate tax rate remains one of the highest in Canada, however, said Gionet. "We understand that this, you know, takes away revenue from government, but at the same time, these businesses do provide a lot of economic activity, employ a lot of people," he said. "It has to be competitive. Otherwise we're just going to be driving businesses away." More work to do, says CFIB In Nova Scotia, the small-business tax rate sits at 1.5 per cent, while the small-business income threshold is $700,000. "We have to look at our neighbours," he said. "New future businesses, new young people wanting to start a business, it might be a disincentive to do so, looking at their own financial situation down the road if the tax rates are not there, are not favourable for them to grow and to be successful." Still, he said the tax changes are a start. "It also sends a signal that P.E.I. is, you know, trying to right the wrongs of their taxation," said Gionet. "I think it's the first step that's going to need to have multiple other steps to be competitive on that landscape. And we want to encourage governments to do that, to find the ways to make P.E.I. competitive."
CTV News
02-06-2025
- Business
- CTV News
More calls for federal government to address Confederation Bridge Toll
The premier of P.E.I. is asking the federal government for an update on the timeline to reduce the tolls for the Confederation Bridge. The Canadian Federation of Independent Business is urgently calling on the federal government to fulfill its promise to reduce and ideally remove tolls on the Confederation Bridge. The association represents over 900 small businesses in Prince Edward Island and throughout Atlantic Canada said Frédéric Gionet the Atlantic Director of the federation. Gionet said 76 per cent of members agree eliminating the toll is the best option to alleviate the impact of transportation costs and level the playing field with the rest of Canada. 'I mean its years in the making and there's a reason why both political parties really jumped on this one as an election campaign promise,' Gionet said. 'They've heard from P.E.I. They've heard from businesses. They've heard from the region. this is a no brainer.' Gionet said there are some constitutional provisions because the bridge was based on the island coming into the confederation. He said a letter has been sent to Ministers in the federal government, local MPs and Premier Rob Lantz to 'bring this election promise over the finish line.' 'The potato industry itself is estimated between five and seven million dollars in direct impact from the toll bridges and you could take every industry in PEI and probably come up with a very similar figure.' Gionet said removing tolls will reduce transportation costs, encourage greater labour mobility, investment and tourism for the island. 'In the spirit of tariffs and Canada having some nation building projects and looking at how we can better trade, there's no better time to do this.' The association is asking for three things right now: urgency on a timeline, fairness for all vehicles and certainty that this change is here to say. In a statement to CTV News, Transport Canada said in part that 'the Confederation Bridge is essential for tourists, residents, and businesses, who need to have safe and reliable options to travel. That's why we're making the Confederation Bridge more affordable. We will ensure fair and equal treatment for P.E.I.'s bridge.' No details were provided for a timeline or what 'more affordable' might look like. 'We're going to continue pushing,' said Gionet. 'CFIB never goes away when it comes to these things. We follow our members demands and they've been clear and they're expecting some answers, so we'll be asking the questions.' For more P.E.I. news, visit our dedicated provincial page.
