Published On: Wednesday, 25 October 2017
Business Taxation Announcements an Improvement, but Overhaul Needed
- The Canadian Chamber of Commerce helps shape public policy and decision-making to the benefit of businesses, communities and families across Canada with a network of over 450 chambers of commerce and boards of trade, representing 200,000 businesses.
CANADA - The federal government’s announcements scaling back the small business tax package announced in July are a step in the right direction, but much more is needed if Canadian businesses are to compete, says the Canadian Chamber of Commerce (Chamber).
“The changes announced this week are a relief to the business community, but business owners are still alarmed since much still remains to be defined," says Perrin Beatty, the Chamber's President and CEO.
"It’s time we had a conversation about taxes in Canada, and the Senate Standing Committee on National Finance’s hearings, which will take place across the country in the next few weeks, are the perfect starting point. For our businesses to succeed, we urgently need to reform our complex, cumbersome and uncompetitive tax system."
Beatty adds that the recent announcement on venture capital, for example, will be a wasted opportunity if it isn’t accompanied by other tax measures sustaining it.
Since the government unveiled its proposed tax measures in July, the Canadian Chamber has advocated a full and independent review of the tax system to make it less of a drag on Canada’s competitiveness. At the Chamber’s annual general meeting, delegates supported appointing a Royal Commission to conduct the review.
“We must stop simply tinkering with the tax system and undertake a comprehensive overhaul. We’re prepared to work with the government to find ways to make it simpler, less burdensome and fairer,” says Mr. Beatty. “We simply don’t have the luxury of falling farther behind as other countries reform their systems. We need to act now.”