Source: The Canadian Press

Manitoba is getting rid of its small business tax.

Businesses in the province will save more than $422 million annually when the tax measures are combined with tax cuts previously announced by the government.

Finance Minister Rosann Wowchuk credited small businesses for their contributions to Manitoba.

She says they invest in the economy, grow communities, support families and keep Manitoba’s unemployment rate one of the lowest in the country.

When the NDP took office in 1999, the small business tax was at e8%.

That number has dropped over the past decade, sitting more recently at 1% before the phase-out was announced Wednesday.

The Canadian Federal of Independent Business voiced support for the move.

“This is a day to celebrate but it doesn’t end here,” said spokeswoman Janine Carmichael.

“I think the next thing for small businesses is really on the personal income tax side — that’s really an area where Manitoba is losing some competitiveness.”

The province, however, said it does not have current plans to change that.

The Canadian Taxpayers Association wonders where the government will try to recoup the $9.5 million shortfall it will face by axing the small business tax.

The government said it has not yet determined how it will make up for the shortfall.