The Canadian Federation of Independent Business is optimistic the provincial government will reduce the small business retail tax from 2.5 to one per cent.

Jonathan Galgay of the CFIB met with Finance Minister Craig Pardy this week to impress on the minister the impact on small business in the province.

He says it will give small business money to reinvest in their operation and their employees – perhaps even to expand.

“It would be a significant investment from government back into small business which are the (economic) backbone of Newfoundland and Labrador.

Finance Minister Craig Pardy says the reduction was in the PC government’s election platform and they see it as a good way to generate economic activity.

“We think that that is good for the economy of Newfoundland and Labrador. “We lower that tax…we think that it has a return. That is what we’ve been engaged in.”