After significant lobbying from the Canadian Federation of Independent Business (CFIB), the federal government announced initiatives aimed at alleviating financial strains burdening Canadian small business owners including small farms who sell products and services.
CFIB was supported by over 31,000 petitions from small businesses.
The government's new policy on carbon taxes introduces rebates calculated based on the number of T4s and employer issues, encompassing business owners, their families, and both full-time and seasonal workers.
However, these rebates will be smaller for SMEs in the Atlantic provinces, reflecting their shorter period of federal carbon tax payments.
The eligibility for these rebates is limited to incorporated firms with 1 to 499 employees, providing a targeted relief.
CFIB reports that a significant majority of small businesses (83%) remain opposed to the carbon tax. The organization continues to advocate for its complete abolition.
The government has also taken steps to reduce the financial burden of credit card fees. Starting October 19, 2024, small businesses will see a 27% reduction in the costs associated with accepting Visa and Mastercard payments if their annual sales do not exceed certain thresholds.
This reduction includes a notable cut in fees for in-store sales and a slight decrease for ecommerce transactions.
“Most small firms should see savings of between $300 and $400 for every $100,000 in Visa sales and $200 for every $100,000 in annual Mastercard sales,” Kelly added. CFIB estimates that over 60% of its 97,000 members will qualify for the savings.
“CFIB will be closely monitoring all credit card processors to ensure the full value of the savings is passed on to the small businesses counting on this relief,” Kelly said.
“We are pleased that the federal government has made this expectation very clear, and we will be working with Minister Freeland, Visa and Mastercard to ensure card processors do not try to keep the savings intended for small firms.”
The deadline for filing 2023 corporate income taxes has been extended to December 31, 2024, offering additional flexibility for small businesses.