Premier Wade MacLauchlan is asking the federal government to extend its consultation period and defer implementation of their proposed tax changes.
The premier sent a letter to federal Finance Minister Bill Morneau in light of the significant concern and uncertainty in the business community as to the effects of the proposed changes.
“Prince Edward Island is experiencing tremendous growth – leading the Atlantic region and other provinces according to many key economic indicators. Much of this growth is thanks to the entrepreneurial spirit, risk-taking, and confidence exhibited by our small and medium-sized business leaders,” the premier wrote. “For these economic leaders to remain confident and continue to invest and drive growth, they need to clearly understand the tax regime in which they will operate. Any confusion or unintended consequences of the changes will have a significant dampening effect on future growth of our economy.”
The premier noted that small and medium-sized businesses are the backbone of Prince Edward Island’s economy and that many business owners have expressed concerns about the proposed changes being an impediment to succession planning, particularly in the agriculture and fishing sectors.
“The consultation process on the proposed changes to private corporation tax laws has shown there is significant concern and confusion in the business community as to the effects of these changes,” he wrote. “While proposed changes to tax systems always promote debate and discussion, my government has received a substantial number of enquiries from business owners who remain unsure as to the scope and impact of the proposed changes.”
The premier wrote to all Prince Edward Island chambers of commerce on September 12 stating that small business owners help build success throughout our province.
“Our government recognizes and appreciates that our small business owners take risks, show initiative, create jobs, and invest in our communities to help build prosperity throughout the province.”