CFIB: small businesses need their carbon tax proceeds

As small businesses in Atlantic Canada are bracing for a carbon tax hike on July 1, the Canadian Federation of Independent Business (CFIB) is calling on the federal government to keep its promise and return federal carbon tax proceeds to small businesses across the country. “Before parliament closes for the summer, Ottawa needs to consider the impacts of the carbon tax hike on small businesses. If the federal government can afford subsidizing large foreign companies, it surely can deliver on the rebate to small businesses it promised a few years ago already,” says Jasmin Guénette, vice-president of national affairs at CFIB. “While households and individuals receive rebates to offset increased costs, small businesses are being left on the sidelines. That's not fair, and Ottawa needs to stick to its word.” Atlantic provinces are moving under the federal carbon pricing system, joining Alberta, Saskatchewan, Manitoba, and Ontario, where the federal carbon tax is already in effect, having increased to $65 per tonne on April 1. With small businesses barely keeping their heads above water, the carbon tax increase comes at the worst time. Nearly two-thirds of small business owners (64%) across Canada say taxes are a serious concern to their business, and only 44% are making normal revenues. In addition, despite collecting $22 billion in carbon pricing revenues, the federal government returned only 0.17% of the promised carbon tax proceeds to small businesses between the 2019-20 and 2022-23 fiscal years.