Promised small business tax cut to be phased in

The new P.E.I. government won't be rolling out a tax break for small businesses exactly as promised, says Premier Dennis King.

During the April election campaign the Progressive Conservatives promised to lower the small business tax rate from 3.5 to 1.0 per cent by January.

Speaking at the Greater Charlottetown Area Chamber of Commerce's annual general meeting in May, following the election, King said it was more likely that the tax would be lowered over the course of a couple of years.

The legislature will open for a spring session starting Thursday, with a budget expected early in the session. Speaking to CBC News this week, King confirmed the small business tax will not see a drastic cut by January.

"We will probably phase that in a little bit more than maybe we would have if we had had a majority situation," he said.

"That's part of the give and take we all have to put forward. So instead of seeing a full point in the budget this year, you'll probably see a half a point."

The minority government led by King will operate without a formal agreement with other parties. King said he is confident this session's throne speech and budget will gain the confidence of the house.

He said the government will work to find the necessary support on other issues as they come up.

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