Recent changes in taxes will mean that by 2004 Alberta will have one of the most competitive business tax environments in North America (see chart). Alberta's overall corporate income tax rate dropped to 13.5 percent in April for general, manufacturing and processing businesses. The tax rate will arrive at 8 percent by April 2004. Premier Ralph Klein also wants to eliminate the province's flat rate, 10 percent income tax by 2005.
      As proof that Alberta's efforts are paying off, the province's economy is expected to grow by more than 4 percent in 2001, while forecasts for the world economy indicate growth of 2.9 percent to 3.2 percent. Last year, Alberta's economy grew by 6.1 percent -- the fastest rate of growth in Canada.
      The service industries play a large role in Alberta's newfound growth. Service exports jumped to US$2.3 billion in 1999, up from $1.3 billion in 1994, representing an average annual increase of 9.7 percent, according to Alberta Economic Development, Alberta International and Intergovernmental Relations. Service exports' portion of total provincial exports rose to 9.4 percent in 1999 (up from 7.9 percent in 1994).
      "Service industries are a very important part of Alberta's economy," says Alberta Economic Development Minister Mark Norris. "Over two-thirds of the province's gross domestic product is generated by the service industry. Eighty-six percent of Alberta firms are in the services industries."