(Darryl Dyck/Canadian Press)

By Derek Craddock

FIGHTING FOR TAX RELIEF

Sask. small businesses want carbon tax axed

Nov 9, 2023 | 2:00 PM

The war over the federal carbon tax is still brewing and now small businesses are the latest group to call for it to be removed.

However, advocates for carbon pricing stand behind the policy and say households and businesses have the ability to adapt.

Following a motion to remove the carbon levy from all home heating until after the next federal election, which was defeated in Parliament last week, the Canadian Federation of Independent Business (CFIB) shared its concerns saying its members are being left behind in the conversation.

The data released by the CFIB on Wednesday showed 85 per cent of members surveyed are strongly opposed to the tax, compared to 52 per cent just a year ago.

One of the biggest arguments according to CFIB President Dan Kelly is that small businesses are not getting the same rebates and incentives that households are.

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“It taxes both consumers and small businesses, but only gives rebate (and) checks back to consumers,” he said. “The average small business has been growing in frustration, as we’ve seen special deals and carve-outs from the carbon tax and we’ve also seen the rate rise significantly over the last couple of years as we look forward with affordability being a major challenge, not just for consumers.”

Kelly said that small businesses account for about 40 per cent of the carbon tax paid in Canada and while the federal government has promised to return 10 per cent to small businesses, many small firms won’t be eligible for the Federal Fuel Charge Proceeds Return Program.

He noted while opposition to the tax is 85 per cent nationally, Saskatchewan appears to be raising the loudest voice as the report found that 93 per cent of Saskatchewan small businesses are against carbon pricing.

The effects of the tax are felt across the province, including Prince Albert. CEO of the Prince Albert and District Chamber of Commerce, Patty Hughes, told paNOW the tax has impacted the bottom line for businesses in the city, noting the added cost for transportation and passing those down to consumers is just one part of the puzzle.

“Businesses have been trying to control their costs, but this is just another item that has increased their costs to do business,” she said. “Business’s margins are getting tighter and tighter with the carbon tax. It definitely has been a major contributor to the higher-than-normal inflation a business typically would experience and manage.”

Groups like the CFIB are calling for the tax framework to be reconfigured or scrapped entirely.

While some advocates of the tax say businesses are getting some money back, Kelly claimed thats not true.

“Virtually no money has flowed back to small businesses,” he said. “They’ve (federal government) collected two and half billion dollars that has been dedicated to small firms and they’re still designing a program to get the money back. Even then, it’s only supposed to go back to a handful of the small businesses that pay the tax.”

The CFIB has released four recommendations it’s giving to the government to alleviate the carbon tax burden on businesses.

– Expanding the carbon tax exemption to all forms of heating fuels, including natural gas and other sources used by small businesses.

– Halting future carbon tax increases, including the hike planned on April 1, 2024.
Immediately returning all promised funds to all small businesses that paid into the tax.

– Ensuring businesses are eligible for rebates or refunds equivalent to the full share of the fuel charge costs they incur (CFIB estimates 40 per cent).

– Supporting the passing of Bill C-234 at third reading in the Senate rapidly without any amendments.

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derek.craddock@pattisonmedia.com