(File photo/CKOM News)

By Derek Craddock

SKYROCKETING COSTS

Small businesses feeling pressure from government costs: CFIB

Jul 19, 2022 | 5:00 PM

First COVID restrictions and now more government-imposed costs are hitting small businesses hard.

That’s coming from the Canadian Federation of Independent Business (CFIB) which said in a release onTuesday that about 80 per cent of businesses in a survey said they are struggling with government-imposed costs.

This includes a recent proposal from SaskEnergy to increase its natural gas rates for the small commercial sector by nearly 20 per cent.

“It has been quite the year since January, and small business owners have seen multiple new costs imposed by the government,” said policy analyst with the CFIB, Brianna Solberg.

“Businesses that have held on by a thread during COVID are now struggling to recover and they’re just faced with these mounting cost pressures.”

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Solberg added SaskPower recently increased its rates and as of July 1, small businesses are again paying corporate income tax.

Other government-imposed costs that are coming down the pipe include the proposed additions to the PST to include entertainment venues, fitness centres, and sporting events.

All this on top of growing inflation and cost of living is proving too much for some businesses.

“Cost relief is becoming urgent for Saskatchewan small businesses,” said Kathleen Cook, CFIB’s provincial affairs director. “Instead of piling on new costs that make it harder for small businesses to recover and grow, the Saskatchewan government should be providing some cost relief.”

“We’ve been calling on them to temporarily suspend the provincial fuel tax and we’ve been calling on them to, once again, suspend collection of the small business corporate tax,” said Solberg who added they are also asking for the proposed changes to the PST to be put on hold and to suspend the collection of small businesses corporate income tax.

Solberg could not speak to specific municipalities but said these provincial costs are affecting the majority of small businesses in Saskatchewan.

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derek.craddock@pattisonmedia.com

Twitter: @PA_Craddock