CALGARY, Sept. 12, 2012 /CNW/ - Manitoba and Saskatchewan are among the
least tax competitive Canadian provinces according to the Annual Tax
Competitiveness Ranking by The School of Public Policy. Report authors
Jack Mintz and Duanjie Chen analyzed the business tax regimes of the 10
provinces and ranked them based on their Marginal Effective Tax Rate
(METR) on capital investment.
High METR rates inhibit a jurisdiction's ability to attract investment
and grow their economy, the authors argue. The METRs for Manitoba and
Saskatchewan are 27.1 and 25.2 percent respectively - only B.C. has a
higher METR at 27.7.
"The common feature in these provinces is a provincial sales tax that is
not in the form of a value-added tax like the federal GST, and hence
adds additional tax costs on capital investment through its levy on
purchases of capital goods," the authors write. "This provincial sales
tax effectively raised METRs by over nine, 10 and 14 percentage points,
respectively, for Saskatchewan, British Columbia and Manitoba."
As a comparison, Alberta, which has no provincial sales tax, has a METR
of 17.9 percent and New Brunswick has the lowest METR at 4.6 percent.
Canada's national average is 19.9 percent.
The report can be found at www.policyschool.ucalgary.ca/publications
SOURCE: The School of Public Policy - University of Calgary
For further information: