March 31, 2004

Alberta's corporate tax rates will be reduced under Bill 27

Edmonton…The Alberta Corporate Tax Amendment Act 2004, introduced in the Alberta Legislature today by Revenue Minister Greg Melchin, is expected to save Alberta businesses $142 million this fiscal year and ensures Alberta continues to have among the lowest business taxes in Canada.

As announced in Budget 2004, Alberta’s business tax reduction strategy will continue this year with the general corporate income tax rate falling from 12.5 per cent to 11.5 per cent, and the small business rate being reduced from 4 per cent to 3 per cent.

With these changes, Alberta’s general corporate income tax rate is second lowest and the small business tax rate will be tied with New Brunswick for the lowest among the provinces.

In addition to these changes, Alberta businesses pay no provincial capital tax, payroll tax, sales tax and the lowest gasoline tax in the country.

Alberta’s business tax reduction strategy was originally introduced in Budget 2001. Over the past four years the small business rate has been cut in half, the small business income threshold has doubled to $400,000 and the general corporate rate has been reduced from 15.5 to 11.5 per cent.  The government’s goal to lower the general rate to 8 percent remains, and will proceed as affordable.

For media inquiries, please contact:

Gerald Kastendieck Alberta Revenue Communications (780) 427-5364
Dial 310-0000 for toll free access outside of Edmonton.

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