Regina, March 13, 2025 - On behalf of over 4,000 small businesses in Saskatchewan, the Canadian Federation of Independent Business (CFIB) has urged the province to provide stability and predictability for small firms in Budget 2025-26. This means avoiding the introduction of any new taxes or cost increases, and following through on election commitments to freeze small business taxes and lower personal income taxes.
“Given the potential impacts of U.S. tariffs and the significant uncertainty small businesses are currently facing, this year’s budget provides an opportunity for the Saskatchewan government to help businesses weather the storm by avoiding the introduction of any new taxes or cost increases and working to reduce costs for small businesses wherever possible,” said Brianna Solberg, CFIB director for the Prairies and Northern Canada.
CFIB has recently met with Saskatchewan’s finance minister to share recommendations as to how the provincial government can support small businesses at this time. In addition to freezing the small business tax rate, to help address the rising cost of doing business and promote business growth and expansion, the Saskatchewan government should:
- Eliminate the PST on commercial property insurance to help with skyrocketing insurance costs;
- Exempt the purchase of all capital expenditures, including machinery & equipment, from the PST;
- Increase the small business corporate tax rate exemption threshold to $700,000;
- Suspend the provincial fuel tax to help offset increased fuel/energy costs; and
- Introduce a securing small business rebate program (ex. BC) to provide small businesses with access to funding to support increased costs due to crime and vandalism.
Saskatchewan faces stagnant productivity, with declining investment in machinery and equipment and capital inputs over the last 10 years. Meanwhile, Saskatchewan has the 3rd highest marginal tax rate on investment in Canada. In response to a recent CFIB survey, almost half of Saskatchewan small businesses said 'the inability to write off PST' is a deterrent to capital investment.
“With U.S. tariffs, now more than ever we must address inefficiencies & promote productivity. CFIB has called on the province to exempt all capital purchases from the PST. Data from a recent CFIB report indicates that removing the PST on capital inputs could increase investment by around 13% (or $197 million). Ultimately this will help support our local businesses and grow our provincial economy,” concluded Solberg.
Click here to view CFIB’s pre-budget submission.
For media enquiries or interviews, please contact:
Brianna Solberg
CFIB provincial affairs director
(306)-713-8071
Brianna.Solberg@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members (4,000 in Saskatchewan) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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