The £98m scheme will be extended for 2017-18, with a new permanent scheme coming into force from 2018.
Under the current system, business premises with a rateable value of up to £6,000 will receive 100% relief, while those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero. These arrangements are being extended to 2017- 18.
"Delivering tax cuts for small businesses was one of our key manifesto pledges", says Mark Drakeford AM, Local Government Cabinet Secretary.
“One of the most effective ways in which we can do this is by making our small business rates relief scheme permanent.
“We know business rates can represent a high proportion of costs for small businesses and that's why we want to give them the certainty and security that this vital source of support will continue in 2017-18.
Over the course of the next year, we will be considering how we can improve the system for 2018, so we better target support for small businesses and, acting on the feedback we've received, ensuring the small minority who try to avoid paying rates pay their fair share.”