EDMONTON, ALTA. – Alberta premier Jason Kenney has announced legislation will be introduced in the spring session of the provincial legislature to roll back the tax rate from 12 per cent to eight per cent.
If the bill passes, the tax rate for employers will drop to 11 per cent on July 1 and will go down by one per cent every Jan. 1 until 2022.
“This tax reduction will give Alberta the lowest tax on employers in the country and is a key part of our plan to get our province back to work. We’ve already heard from major Canadian and global corporations that they’re ready to invest in Alberta again – and we’re proud to be taking bold action that will create growth, jobs and prosperity for Albertans,” Premier Kenney said.
“Alberta’s businesses are struggling and the unemployment rate is far too high. We intend to change that. We value Alberta’s job creators, and this tax reduction will help stimulate investment and economic activity in the province. We will get Alberta working again by making it easier to do business in this province,” minister of finance and treasury board president Travis Toews added.
A release by the Alberta government stated by the first reduction this summer Alberta will have the lowest tax rate on employers in Canada and by 2020 the next lowest provincial tax rate will be almost 45 per cent higher than Alberta.
Kenney made the announcement at Lafarge’s infrastructure shop in Edmonton and Lafarge Western Canada CEO Brad Kohl voiced his support at the announcement for the tax shift.
“Lafarge is a testament to what has historically been Alberta’s advantage – a province that fosters growth, investment and innovation. Our company supports the construction of infrastructure, commercial and residential buildings that people use for every aspect of their lives with our locally sourced, sustainably manufactured materials. We look forward to continuing to invest in Alberta’s future as our province attracts people and companies that want to live and work in a province that is open for business,” Kohl said.
Kenney also said the first initiative in the provincial throne speech next week will be repeal of the provincial carbon tax which Kenney said will immediately relieve $1.4 billion dollars of taxation for Albertans.