Canadian Bankers Association

Canadian Bankers Association

October 30, 2007 14:30 ET

Regulatory Efficiency and Tax Competitiveness Vital to Saskatchewan Businesses and the Province's Prosperity

SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 30, 2007) –

Attention Business Editors:

A competitive tax and efficient regulatory environment are key to helping businesses throughout Saskatchewan and the rest of Canada compete in today's global economy and to ensure the long-term prosperity of all. That is the message that Nancy Hughes Anthony, president and chief executive officer of the Canadian Bankers Association (CBA), delivered this morning in a speech to the Greater Saskatoon Chamber of Commerce.

Ms. Hughes Anthony said that Saskatchewan and Canada, in order to compete, must ensure that their corporate taxation rates are competitive, and preferably lower, than other jurisdictions since a competitive tax regime can be a key factor in encouraging investment.

"All levels of government in Canada need to participate and contribute to achieving the goal of a competitive tax policy," said Ms. Hughes Anthony. "Progress has been made on the reduction of corporate income tax in Saskatchewan, but more needs to happen, particularly on the capital tax on financial institutions."

Removing the capital tax on financial institutions would create a level playing field for all businesses in the province since, starting next year, capital taxes will be eliminated for all businesses except for financial institutions. It would also put Saskatchewan in a good position to compete for investment with its neighbour, Alberta, which eliminated capital taxes entirely in 2001.

"Capital taxes are known to deter investment and Saskatchewan needs more investment to create careers for our young graduates here at home," said Kent Smith-Windsor, Executive Director of the Greater Saskatoon Chamber of Commerce. "Eliminating capital taxes on financial institutions is an important step in our quest to build the best business climate in Canada, thereby creating a city of opportunity," he added.

The CBA is recommending that the scheduled reductions in the federal corporate income tax rate should be accelerated and then reduced even further to 16.5 per cent by 2012. Relief in personal income tax, particularly in the lowest income tax bracket, will also help attract and retain a viable labour force.

Ms. Hughes Anthony also highlighted the need to address the impending skilled labour shortage, an issue of concern in Saskatchewan and across Canada: "There are too many internal barriers within Canada that limit labour mobility and the establishment of free trade among the provinces and territories is long overdue. We were pleased to see the federal government emphasize this in the Speech from the Throne."

The Canadian Bankers Association works on behalf of 54 domestic chartered banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 249,000 employees to advocate for efficient and effective public policies governing banks and to promote an understanding of the banking industry and its importance to Canadians and the Canadian economy.

The full text of Ms. Hughes Anthony's remarks is available at www.cba.ca.

Contact Information

  • Canadian Bankers Association
    Melanie Minos
    (416) 362-6093, ext. 220, Cell: (416) 587-7733
    Email: mminos@cba.ca