CALGARY, Sept. 12, 2012 /CNW/ - PEI will dramatically improve its tax
competitiveness with the implementation of the HST 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.
"The four Atlantic provinces are among the most tax-competitive within
the OECD, with New Brunswick having the lowest METR among all
jurisdictions," the authors write. "The common feature in these four
provinces is eligibility for the federal Atlantic Investment Tax
Credit, and a harmonized sales tax (HST) that has little distortive
impact on capital investment."
Accounting for harmonization, the report lists the PEI's METR at 10.8
percent. This compares to a METR of 28.8 percent in 2011 when
harmonization was not accounted for. The authors argue that this
decrease will improve the province's ability to attract investment and
grow their economy.
By comparison, New Brunswick has the lowest METR at 4.6 percent and B.C.
has the highest at 27.7 percent. The national average for Canada is
The report can be found at www.policyschool.ucalgary.ca/publications
SOURCE: The School of Public Policy - University of Calgary
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