British Columbia saw the biggest drop in Canada between 2009 and 2013 in the Canadian Federation of Independent Business' (CFIB) ranking of small business-friendly tax systems, the CFIB announced October 23.
B.C. has fallen from fourth place to seventh in the past four years. Each province was given a score out of 10, with 10 being the best in terms of how small businesses fare tax-wise in that jurisdiction. B.C.'s score was 5.65.
"The return of the PST affected B.C.'s score on sales and excise tax, and that has played a large role in dragging the province down three spots in the overall rankings," said Mike Klassen, CFIB director of provincial affairs in B.C.
"This is why, as soon as it is fiscally prudent to do so, B.C. should implement the Expert Tax Panel recommendation to provide a tax credit on PST paid on all acquisitions of machinery and equipment."
Alberta has remained at the top with a score of 8.53. Rounding out the top three were Saskatchewan (7.01), which placed third in 2009, and New Brunswick (6.98), which fell from second in 2009.
Ontario (5.50), Nova Scotia (5.22) and Quebec (3.97) were at the bottom of the pile.
Provinces were ranked on the basis of 53 indicators in five areas of tax policy, which are:
- premiums and payroll taxes;
- sales and excise taxes;
- corporate income taxes;
- personal income taxes; and
- property taxes.
The full report can be viewed here.
