Amendments to the Income Tax Act, approved in the House of Assembly last week, mean that the small business tax rate has dropped.

The reduction was announced in the spring budget, but required an amendment to the legislation to allow it to take effect.

The small business corporate income tax rate has dropped from 3 per cent to 2.5 per cent retroactive to January 1, 2024.

Government says the move will result in lower taxes for about 6,200 small businesses in the province.