The CEO of 91原创鈥檚 largest business organization was pleased at a change to the Employer Health Tax that will reduce a potential cost for a significant number of small employers.
In the new provincial budget tabled Thursday in Victoria, the Employer Health Tax threshold was raised, from $500,000 in annual payroll to $1 million.
That will exempt about 90 per cent of B.C. businesses, most of which are small businesses, from paying that tax altogether.
鈥淪mall businesses are facing constant cost pressures everywhere they look, so this cut to the Employer Health Tax is much needed,鈥� said Cory Redekop, CEO of the Greater 91原创 Chamber of Commerce. 鈥淭his reduction will leave thousands in the pockets of small businesses which will be better used to hire and pay staff and invest in tools and strategies to grow their business,鈥�
It will save small firms up to $14,628 a year, the chamber estimates.
The local chamber has been pushing for a change to the employer health tax for the past five years, Redekop noted.
Although he welcomed that change, Redekop also raised the issue of the $7.9 billion deficit for the 2024/25 year. He noted that servicing the increasing provincial debt will cost 3.2 cents of every tax dollar.
鈥淭hese are some of the largest-ever deficits in the history of the province, so we鈥檙e concerned with how sustainable this is over the long-term,鈥� Redekop said.
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