Release: Calgary Chamber calls for province to eliminate small business tax

As small businesses continue to struggle with affordability, the Calgary Chamber of Commerce is calling on the provincial government to eliminate the small business tax to promote growth and investment in small businesses

Calgary, AB, October 15, 2024 – While economic pressures like inflation and interest rates are easing, 58 per cent of Calgary businesses continue to report rising costs – inflation, interest rate and inputs – as their top obstacle to growth. This is particularly acute among small and medium-sized businesses, 69.9 per cent of which cite cost concerns as their largest impediment. To support these businesses, the Calgary Chamber of Commerce is calling on the provincial government to eliminate the small business tax, currently at two per cent.

“Small and medium-sized businesses are the backbone of Alberta’s economy. As these businesses play a pivotal role in local communities, their ability to thrive directly impacts job security, local spending and overall economic resilience, says Deborah Yedlin, President & CEO at the Calgary Chamber of Commerce. “Eliminating the small business tax will not only promote affordability but also ensure Calgary and Alberta remains a leading destination for entrepreneurship and innovation.”

It is estimated that eliminating the tax would cost the province $308 million in 2025/26, which represents just 0.4 per cent of Alberta’s total revenues – while benefiting over 153,000 business across all regions of the province. With the provincial government forecasting a surplus of over $1 billion next year, the cost of eliminating the small business tax would amount to less than a quarter of that surplus, allowing the province to maintain its strong fiscal position.

Additionally, eliminating this tax could save small businesses up to $10,000 annually, enabling them to put critical dollars back into their businesses to invest in machinery, equipment or technology; hire new employees; expand their products or services; or reinvest in their communities.

“With Manitoba leading the country with no small business tax, and Saskatchewan having a rate of just one per cent, it is incumbent on Alberta to prioritize being a competitive place for entrepreneurs to succeed,” says Yedlin. “It is critical we use all the tools available to support our small businesses, providing a stable environment for them to be successful. Eliminating the small business tax would enable us to provide the relief these businesses need while also maintaining fiscal responsibility.”

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About the Calgary Chamber of Commerce 

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.

Media opportunities 

For media inquiries, please contact

Brittany Brander, Manager, Public Relations & Communications
media@calgarychamber.com