Federal Budget

May 2, 2006

Overall, the Delta Chamber of Commerce Chamber is pleased with the federal budget announced by the Conservative government today.
“The budget’s cut to certain taxes and corporate taxes will help businesses to be more competitive internationally,” says Maria DeVries, president of the Delta Chamber, referring to items such as

• reducing the general corporate income tax rate to 19 per cent from 21 per cent by 2010;
• eliminating the corporate surtax for all corporations as of January 1, 2008; and
• eliminating the federal capital tax as of January 1, 2006.

DeVries notes that reducing the tax burden on small businesses is always welcome because of its impact on individuals and families. And, because a majority of businesses in Delta are categorized as small businesses, local business owners will benefit from features such as increasing the amount of small business income eligible for the 12 per cent tax rate to $400,000 from $300,000 on January 1, 2007.

Other good news for Delta and other parts of British Columbia, says DeVries, is the new tax credit of up to $2,000 for employers who hire apprentices and a new $1,000 grant for first and second year apprentices. The federal budget also includes a new $500 tax deduction for tradespeople for costs of $1,000 for tools and equipment that they require for employment.

“Reducing the Goods and Services Tax in July by 1 percentage point helps relieve all Canadians,” adds DeVries.
The Chamber has a concern regarding any possible delay in funding for Gateway Transporatation Plans. We have transportation problems now, we can’t afford to wait any longer to have them resolved.

Nearly 500 businesses in Delta are members of the Delta Chamber of Commerce. The Chamber’s primary role is to represent the business community’s interests at all levels of government