Alberta, home to the world’s third-largest oil reserves, said it will accelerate a corporate tax cut and invest $10 billion in infrastructure projects to jump-start an economy that has been hard hit by oil price volatility and the COVID-19 pandemic.
Alberta Premier Jason Kenney, who said the tax cut would take effect July 1, described the program as the largest infrastructure investment in the province’s history. The corporate tax rate will fall to 8% from the current rate of 10%, two years sooner than scheduled. Economic shutdowns due the virus outbreak added to challenges in the oil-rich province from lower crude prices and pipeline congestion, pushing the unemployment rate as high as 25%.
Alberta’s recovery program will create an estimated 55,000 new full-time private sector jobs, and stimulate $13 billion in economic growth, said Kenney. The province will also invest an additional $175 million to expand access to venture capital for early stage start-up companies while seeking to limit the use of temporary foreign workers to boost local employment.
Alberta Finance Minister Travis Toews said the tax cut will cost an estimated $200 million to $300 million in the current fiscal year and between $100 million and $200 million next year.
