Alberta’s first United Conservative government has unveiled plans to balance the province’s budget without increasing the tax burden on businesses in the foodservice and hospitality sector.
Finance Minister Travis Toews introduced Alberta’s 2019 budget in the legislature on Oct. 24, stating that it “includes supports to drive investment and help businesses succeed, while fuelling the economy and creating well-paying jobs for Albertans.”
Budget 2019: Highlights for foodservice
Budget 2019 includes the following good news, in line with policy recommendations that Restaurants Canada made in the lead up to the April 16 election:
- No new taxes or fees. Alberta’s foodservice and hospitality businesses will not have to worry about any new taxes or fees — or increases to liquor markups.
- Tax relief for job creators. Alberta has been the most tax-competitive business jurisdiction in Canada since the province reduced its corporate tax rate from 12 per cent to 11 per cent on July 1, 2019. This rate will drop to 8 per cent once the Job Creation Tax Cut is fully implemented on Jan. 1, 2022, which will make the province one of the most attractive investment destinations in all of North America.
- Business capital investment incentives. Enhancements to the capital cost allowance regime will provide up to $900 million in provincial tax deferrals to companies that make new investments in capital assets to grow and modernize their operations over the period of 2018-19 to 2022-23
Budget 2019 also includes plans to save the province at least $140 million by reducing red tape, streamlining processes and consolidating administrative services.
Restaurants Canada looks forward to continuing to work with all members of Alberta’s legislature and other government stakeholders toward fulfilling even more commitments made during the provincial election to help improve operational realities for foodservice businesses.
If you have any questions or would like more information, you can get in touch with Mark von Schellwitz, Restaurants Canada Vice President, Western Canada, at email@example.com or 1-800-387-5649 ext. 6500.