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Newfoundland and Labrador Reduces Small Business Tax Rate

Newfoundland and Labrador has reduced the small business corporate income tax rate from 3% to 2.5%, effective January 1, 2024. This move, part of Budget 2024, was approved by the House of Assembly and is expected to benefit approximately 6,200 small businesses in the province.

Economic Development Initiatives

The budget includes several measures aimed at supporting economic growth and development:

  1. Business Navigators: $500,000 allocated to assist businesses in navigating government policies and reducing bureaucratic hurdles.
  2. Economic Development Funding: Approximately $35 million dedicated to research and development, commercialization, investment attraction, regional development, and business growth.
  3. Connectivity Initiatives: $7 million for broadband and cellular projects, contributing to a total provincial commitment of $25 million.
  4. Stable Tax Environment: No new taxes, tax increases, or fee hikes are included in the budget.

Government’s Commitment

Minister of Finance, Honourable Siobhan Coady, emphasized the importance of small businesses to the community and highlighted the anticipated economic growth for the province. The budget aims to create a sustainable, self-sufficient province through these strategic investments and tax relief measures.

For more details, visit the Government of Newfoundland and Labrador’s news release.

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