CHARLOTTETOWN, P.E.I. — Welcome relief is being delivered to the business sector in the provincial budget, says the interim CEO of the Greater Charlottetown Area Chamber of Commerce.
Gerard Adams says the chamber is “very pleased" the province’s small business tax will be reduced from three per cent to two per cent as of January 2021.
“It will be a welcome help to get through the next while as we try to return to a normal of some kind," he says.
The chamber had been calling for a business tax rate reduction for some time – and the Progressive Conservatives had promised a reduction to one per cent during the 2019 election.
The announcement of an increase in the basic personal amount from $10,000 to $10,500 is also news the chamber views as positive.
Adams says the chamber will continue to encourage government to fulfil its election promise to increase the basic personal amount to $12,000 by 2023 and tie subsequent increases to the Consumer Price Index.
“Over the last number of years, the chamber has advocated for a basic personal amount increase to help improve the situation for employees, particularly lower-wage earners,” says Adams.
“Given the current economic landscape, this increase is needed more than ever.”
Adams says the chamber appreciates the need for Finance Minister Darlene Compton to table a budget calling for a large deficit of $172.7 million.
“Clearly the chamber would never advocate for big deficits, but given the situation right now we would expect that the government would have to do this," he says.
“By the same token, at some point we would be looking for a plan for how we in the long term get back to a sense of normalcy on the fiscal side as well."
Adams says the stability of businesses as the pandemic persists varies greatly by industry and size of operation.
Overall, he adds, a sense of cautious optimism exists among business people here.
“They’ve adapted extremely well," says Adams.
“They’ve taken advantage of any government assistance but even on their own they’ve adapted very well. They’ve been creative in finding ways to get their product out there, to get their service out there."
