The Chartered Professional Accountants of British Columbia (CPABC) applaud the government for delivering a budget that aims to improve affordability and social services, however, increases to taxes affecting the business community could impact competitiveness.
“B.C.’s CPAs welcome the government’s commitment to follow through with the February Budget’s decision to eliminate the provincial sales tax on electricity,” said Lori Mathison, FCPA, FCGA, LLB, president and CEO of CPABC, “However, increasing the general corporate income tax rate from 11 to 12 per cent for businesses with income over $500,000 impacts our competitive advantage amongst the western provinces and Ontario in terms of investment.”
Comparing to other provinces, the increase in corporate income tax rate would place B.C.’s rate above Ontario’s 11.5 per cent, and in line with the other western provinces. Increases to the individual income tax rate on taxable income over $150,000 and to the carbon tax could also threaten business competitiveness and the retention of talent.
“Maintaining business competitiveness is vital to long-term economic sustainability. Any negative tax changes could affect our ability to attract new business,” continued Mathison. “However, we have laid solid foundation through a diversified economy.”
In addition, the provincial government is committing $5 million for the establishment of an Innovation Commissioner, Emerging Economy Task Force, and the Fair Wages Commission. These initiatives are welcome and will help us maintain a modern and sustainable economy.