Small businesses push for tax cut ahead of New Brunswick budget

New Brunswick small‑business owners would like to see a tax reduction in the upcoming provincial budget.

With the budget set to be released next Tuesday, the Canadian Federation of Independent Business says that if the government wants to attract more private investment, reducing the small‑business tax rate by one percentage point is the way to do it.

“There has been a widespread productivity issue across Canada for years, and for business to grow you need capital — and to become more productive you need capital,” said CFIB Atlantic vice‑president Louis‑Philippe Gauthier.

The government is currently facing a record $1.3‑billion deficit and has warned of “difficult decisions” in the upcoming budget.

Gauthier said lowering the business tax would free up revenue small businesses could reinvest in their operations, helping them grow and contributing to the province’s economic development.

Along with a lower tax rate, the organization is also calling for the province to increase the income threshold from $500,000 to $700,000 and index the threshold to inflation annually.

Citing data compiled by the CFIB, Gauthier said that instead of targeted incentive programs businesses must qualify for, members prefer “broad‑based tax approaches.”

“From an entrepreneurship perspective, we are developing new businesses,” he said.

In 2025, Nova Scotia lowered its small‑business corporate tax rate from 2.5 per cent to 1.5 per cent. Prince Edward Island also reduced its rate, from 16 per cent to 15 per cent.

In Newfoundland and Labrador, the current Progressive Conservative government has pledged to cut the small‑business tax rate from 2.5 per cent to 1 per cent as part of its campaign commitments.

Gauthier said it would be a “shame” if New Brunswick became the province with the highest small‑business tax rate in Atlantic Canada.

Beyond tax changes, Gauthier said the CFIB would also like to see a construction‑mitigation fund in the next two budgets to support businesses affected by disruptions caused by work on the Miramichi Centennial Bridge.

He said that with the bridge closing this summer and traffic being diverted to King George Highway, congestion will make it harder for customers to access nearby businesses.

The CFIB has been advocating for compensation to reflect potential customer losses, but the province has already declined the request.

Despite the rejection, Gauthier said the organization will continue its advocacy efforts.