REGINA -- On Monday, the provincial government introduced legislation to reduce the tax rate for small businesses in Saskatchewan over the next three years.

The initiative will see small business corporate income tax rate drop from two per cent to zero effective Oct. 1, 2020. On July 1, 2022, the small business tax rate will increase to one per cent. On July 1, 2023, the tax rate will return to two per cent. The province says the amount small businesses can earn at the tax rate will remain at $600,000 which is the highest threshold in Canada.

 “Saskatchewan’s small businesses and their employees have been hit hard by the effects of the global COVID-19 pandemic,” Donna Harpauer, deputy premier and finance minister, said in a press release. “Lowering taxes for every small business in our province over the next three years will help them to recover from the pandemic and enable them to retain and hire more workers.”

According to the province, the tax reductions will benefit about 31,000 small businesses and will help them save more than $189 million in provincial taxes over the next three years. This gives businesses average savings of more than $6,100 per year.