Ontario Announces Small Business Tax Cut During Uxbridge Visit

COLLEEN GREEN The Standard

UXBRIDGE: Provincial leaders gathered in Uxbridge on April 1st, to announce new measures aimed at supporting small businesses, highlighting a significant corporate tax reduction, during an event, hosted at the long-standing family enterprise, Low’s Furniture.

The announcement brought together, Finance Minister, Peter Bethlenfalvy, Associate Minister of Small Business, Nina Tangri, and Dan Kelly, president of the Canadian Federation of Independent Business (CFIB). The venue itself underscored the importance of local enterprise. Low’s, is a sixth-generation family business operating since before 1860.

“On behalf of my husband, John, and myself, I would like to welcome you, to our family business,” said Ashley Low, noting the company’s long history in both furniture retail and funeral services. Ashley Low added, the business has also been a CFIB member for 48 years.

Mrs. Low voiced strong support for the province’s proposed tax cut, emphasizing its local impact. “This allows us not only to reinvest, into the advancement of our own businesses, but it also allows us to reinvest our money into the community,” she said, pointing to funding for: youth sports; senior programs; and local facilities, such as hospitals and hospices.

MPP Peter Bethlenfalvy praised the Low family’s legacy and highlighted the broader role of small businesses in Ontario’s economy. “Small businesses are clearly the heartbeat of many communities,” he said. “Governments don’t create jobs, we set the conditions, and work together to do more for everybody in our community.”

MPP Peter Bethlenfalvy framed the tax cut as part of a wider economic strategy amid uncertain times. “When you’re going to part with $1.1 billion, this is going to spur a lot of economic activity,” noting the measure is expected to benefit approximately 375,000 businesses across the province.

MPP Nina Tangri outlined the specifics of the proposal, which would reduce the small business corporate income tax rate, from 3.2 percent to 2.2 percent, effective July 1st. “This cut will reduce the corporate income tax rate by 31.25 percent,” she said, adding qualifying businesses could save up to $5,000 annually.

Ms. Tangri also emphasized the broader importance of small enterprises. “Small businesses are the backbone of our economy,” she said, noting they account for 98 percent of employer businesses and employ roughly 3.5 million people in Ontario.

Dan Kelly welcomed the announcement, calling it a meaningful step during a challenging economic period. “This tax reduction is critically important, there has been a choking level of uncertainty in the economy,” Dan Kelly said, citing ongoing pressures from the pandemic’s aftermath, trade disputes, and rising costs.

Dan Kelly added, such measures directly benefit workers and communities. “Half of [business owners] said they use these kinds of tax savings to help improve wages, almost half said they use it to expand or grow,” Dan Kelly explained.

The event concluded with remarks on housing and infrastructure, as MPP Peter Bethlenfalvy addressed questions about development charges and municipal support, stressing continued provincial investment and collaboration.

For local business owners like Ashley Low, however, the focus remained clear. The tax relief, is ultimately about strengthening both businesses and the communities they serve: “This tax reduction allows us to further improve our community, where we not only work, but where we also live,” she said.