The Canadian Federation of Independent Business (CFIB) says it believes that Ottawa owes an estimated $2.5 billion in carbon tax rebates to Canada’s small and medium-sized enterprises (SMEs) – including small farms.
This overdue payment spans five years and affects businesses in eight provinces, highlighting a pressing issue within the carbon tax framework.
Initially aimed at encouraging environmental sustainability – which of course farmers understand, but the carbon tax has inadvertently placed a financial strain on SMEs. In Ontario, Manitoba, Saskatchewan, and Alberta, businesses are due rebates ranging from $2,600 to $7,000.
For SMEs in the four Atlantic provinces, which joined the carbon tax program more recently, expected rebates range from $630 to $1,060 for just a partial year.
CFIB president Dan Kelly emphasized the unfairness of the situation, noting the substantial impact of these funds on small business operations.
The delay in disbursing these rebates is not only a financial concern but also a matter of principle, highlighting the need for equitable treatment of all stakeholders in environmental policies.
Further complicating matters, the federal government plans to reduce SME rebates from 9% to 5% starting in 2024, a move criticized by the CFIB. This reduction is seen as detrimental to small businesses, especially when compared to increased rebates for other groups.
The CFIB is advocating for several measures to address these issues, including the immediate release of the $2.5 billion owed, an equitable rebate system for all SMEs, and a revision of the planned reduction in SME rebate percentages.
They also propose exemptions for specific uses of natural gas and propane in agriculture, a freeze on the carbon tax rate, and exemptions for all heating fuels.
Small businesses are encouraged to support these initiatives by signing the CFIB's petition, lending their voice to the fight for fairness in carbon tax implementation.
The CFIB, representing 97,000 members across various sectors, remains committed to advocating for policies that support the success and sustainability of Canadian SMEs.
This call to action underscores the importance of treating small businesses fairly within environmental policy frameworks, ensuring that measures aimed at promoting sustainability do not disproportionately burden those at the heart of the Canadian economy.