Opinion: Sask. budget needs to offer lifeline to small business

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With rising costs, economic uncertainty and the threat of U.S. tariffs, small business owners across the province are looking to the Saskatchewan government for meaningful support in budget 2025-26.

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Freezing taxes, avoiding the introduction of new costs and implementing policies that will encourage investment aren’t just nice-to-haves, they’re essential to encourage productivity and maintain economic growth in our province.

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While the government’s election commitments to hold the small business tax at one per cent and lower personal income taxes are a good start, more is needed.

The Canadian Federation of Independent Business recently met with Saskatchewan’s finance minister to share recommendations on how the provincial government can help local small businesses weather today’s challenges.

If you ask small business owners what’s holding them back from growing or expanding their operations right now, they’ll likely point to the increasingly high tax burden they’re facing.

Saskatchewan is one of the only provinces to apply a sales tax to key business investments and, as a result, Saskatchewan has the third-highest marginal tax rate on investment in Canada.

In response to a recent CFIB survey, almost half of Saskatchewan small businesses said “the inability to write off PST” is a deterrent to capital investment.

While it is encouraging to see that Saskatchewan has recently posted some good numbers in terms of private capital expenditure growth, this does not change the fact that a high marginal tax rate is still a barrier to investment for small businesses who are operating on thin margins.

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Productivity is hindered because many small businesses can’t afford to make the necessary investments in capital inputs needed to grow. CFIB has called for the removal of the PST on all capital purchases — like machinery and equipment.

This would give small businesses the boost they need to expand, innovate and remain competitive.

In a recent report, CFIB estimated that eliminating the sales tax on capital inputs could increase investment by 13 per cent, injecting nearly $200 million into Saskatchewan’s provincial economy. That’s not just good news for business owners, it’s a win for Saskatchewan’s economic future.

Beyond investment barriers, the cost of simply keeping the lights on is skyrocketing. Business owners are getting hammered by soaring costs for everything from commercial insurance to fuel — not to mention the costs to secure their property in the face of crime and community safety challenges.

To support local businesses, the province could eliminate the PST on commercial property insurance, suspend the provincial fuel tax, and roll out a small business security rebate program (something B.C. and Manitoba have already done).

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These are practical steps that would provide immediate financial relief and ensure small businesses can keep serving their communities.

Saskatchewan’s small business owners are nothing if not resilient. They’ve faced countless challenges and always find a way to adapt. But sometimes resilience alone isn’t enough.

They need a business environment that helps them grow, especially as many are facing considerable uncertainty due to tariffs from the U.S..

For many local businesses that rely on cross-border trade, these tariffs won’t just be an inconvenience, they’re a direct threat to their bottom line. The impact could mean slimmer margins, price increases, layoffs or, in the worst cases, business closures.

To help protect our economy against these trade threats, we need governments to get serious about making it easier to do business in Canada.

That means we must take a good, hard look at the impediments to running a business within provincial borders — but we also need to get serious about breaking down interprovincial trade barriers. We need the Saskatchewan government to be a champion here.

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Now more than ever, it is crucial for provinces and territories to work together to allow for the free flow of goods, services and workers within Canada. Breaking down these barriers would make it easier for businesses to expand, reach new customers and grow without unnecessary red tape slowing them down.

Small businesses can’t afford any more uncertainty. By prioritizing tax relief, reducing operating costs and fostering a stable, predictable business climate, the Saskatchewan government can help ensure small businesses don’t just survive, they thrive.

Brianna Solberg is CFIB’s director for provincial legislative affairs for the Prairies and Northern Canada.

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