Thank you, Mr. Speaker. Mr. Speaker, yesterday I tabled some correspondence from the Yellowknife Chamber of Commerce that advocates to decrease the small business tax rates to two per cent, and the larger business tax rate by one per cent, which would give the Northwest Territories the lowest and most competitive tax rates for businesses in Canada. The Minister of Finance indicated he supports this recommendation.
Masi. Minister of Finance.
Yes. Thank you, Mr. Speaker. Mr. Speaker, as part of our mandate, I believe the support to small businesses was part of the 18th Legislative Assembly’s mandate, and it is something that we would have to consider. We’re going through an exercise and a budget session right now. We will be taking part in our business planning process in September, and we know it is part of the mandate. It is a concern of many of the Members in this Assembly, so as we continue to go forward, we will explore the possibility. I can say that we have probably about 50 per cent of our small business is in the Northwest Territories, I believe, don’t pay any tax at all, but having said that, recognizing that it is in the mandate and a priority of many of the Members, it’s something that we would have to consider.
Not sure if that was a clear commitment to the recommendation, but I appreciate that the Minister’s speaking about developing approach. Can I take that to mean that by the next budget, Mr. Speaker, we will have a small business tax cut continued in that budget?
Mr. Speaker, I can’t make that commitment here as to what’s going to be in the next budget without going through the budget planning process, and as part of that process is the business planning process in September, which we take part in along with the Regular Members. I’m sure the issue will be raised at the time, and it’s something that we can determine then, if it’s financially viable to include into next year’s budget cycle.
Mr. Speaker, certainly, we on this side of the House can advocate for things, but the department needs to drive the bus. Will the department be bringing forward in their next business plan a tax cut for small businesses?
I appreciate the Member letting the department drive the bus when it’s convenient for Members on the other side. We will work with the Members as we have committed to do, and bring in a lot of the issues in the mandate forward. There’s times where we try being erased to the bottom with the other jurisdictions across the country as far as business tax go, and in our case, because of the high cost of delivering programs and services up here, it gets to be a little unaffordable. I have made the commitment to work with Members opposite when we go through our business planning process, and as we develop our main estimates for next year.
Masi. Oral questions. Member for Kam Lake.
Thank you, Mr. Speaker. Mr. Speaker, year on year, corporate tax revenue has shrunk. I think that sends a signal that we are losing investment. Measures like this send a clear signal that the North is open for business, and we aren’t drawing much from our small tax, our small taxes anyway. It’s a sacrifice that will result in economic growth. It’s supported by many in the Northwest Territories, including our business community. I’d like the Minister to give a firmer commitment that it will be in the business plan for the fall sitting. Thank you, Mr. Speaker.
Mr. Speaker, there’s a number of reasons why business is not as lively across the Northwest Territories as it usually is. Part of it is because of lack of investment, and what we’re trying to do going through the exercise that we’re going through now is to have more money that we can invest into more opportunities for our businesses to take advantage of some of the money that we will make available. Again, it is an issue that needs further discussion, and I have committed to being a part of those discussions with the Members across the floor, and with my Cabinet colleagues as well. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Yellowknife Centre.
