TORONTO, Oct 16 (Reuters) - Canada's federal government plans to cut the small business tax rate to nine percent from 10.5 percent following backlash to a proposal unveiled in mid-July, CBC News and other media reported on Monday.
Finance Minister Bill Morneau's move to cut the tax rate aims to deflect criticism of the July proposal, which included higher taxes for small business owners when they transfer their companies to family members, the Globe and Mail reported.
That angered small business owners who said the changes would hurt the middle-class Canadians that the government seeks to help, the reports added.
Prime Minister Justin Trudeau is expected to announce the tax cut later on Monday, other local media reported.
Trudeau campaigned in 2015 on a promise to reduce the small business tax rate to nine per cent from 11 per cent over three years. But in the 2016 budget, Morneau cut the rate only to 10.5 percent and deferred further reduction.
Finance ministry officials were not immediately available for comment.