Legislation introduced to lower small business tax in April

The New Brunswick government has introduced legislation to lower the small business tax rate to 2.5 per cent, effective April 2018.

It's the fourth cut to the rate since January 2015, when the rate was 4.5 per cent.

Government also introduced legislation to help self-employed New Brunswickers and employees of small and medium-sized businesses save for retirement through Pooled Registered Pension Plans (PRPP).

The aim is to reduce the administrative burden of operating a pension plan and make offering a pension plan more attractive and affordable.

Finance Minister Cathy Rogers says the PRPP Act allows one more pension planning tool for New Brunswickers that's low-cost to both employees and employers.

The new legislation also includes housekeeping amendments to ensure the New Brunswick Income Tax Act is consistent with the federal Income Tax Act, as well as an amendment to eliminate the political contribution tax credit for corporations effective in June 2018.

The latter is the result of the recent banning of corporate and union donations to political parties.