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Trudeau Reduces Canada’s Small Business Tax Rate Amid Uproar

  • Rate to be cut to 9 percent over two years, from 10.5 percent
  • Measure will cost taxpayers about C$2.9 billion by 2023
Justin Trudeau

Justin Trudeau

Photographer: F. Carter Smith/Bloomberg
Updated on

Prime Minister Justin Trudeau said his government will reduce Canada’s small-business tax rate, seeking to quell the angry reaction to an earlier plan focused on curbing tax breaks for some small private companies.

The rate will be lowered to 10 percent by Jan. 1 and again to 9 percent at the start of 2019, from today’s 10.5 percent, Trudeau and Finance Minister Bill Morneau said Monday at an event near Toronto.