83% of businesses want federal carbon tax system scrapped

by MorinvilleNews.com Staff

With the federal government moving forward with returning more than $2.5 billion in promised carbon tax rebates to small businesses, a Canadian Federation of Independent Business survey indicates 83 per cent are opposed to the federal carbon tax system and want it scrapped.

“While the 2024 budget promises the government will “urgently” return the $2.5 billion in carbon tax revenue owed to 600,000 small businesses in eight provinces, entrepreneurs still do not have details on the size or timing of their rebates,” said CFIB President Dan Kelly. “In addition, while the carbon tax rate will rise again on April 1, the federal government has cut the size of the SME rebate scheme from 9% to 5% of total revenue.”

Kelly says the entire carbon tax system has been unfair to small businesses for far too long, “[W]ith the tax going up and rebates for small business being cut, it’s clear the carbon tax regime is broken and has got to go.”

The Canada Carbon Rebate for SMEs will return $2.5 billion in carbon tax revenue collected from Alberta, Saskatchewan, Manitoba, Ontario and the four Atlantic provinces small businesses over the past five years. CFIB estimates this represents less than one-quarter of the amount paid by businesses.

Business owners in the eight provinces must file their 2023 corporate income tax return by July 15, 2024 and only incorporated firms with 499 paid staff or fewer will be eligible.

“The rebates and the expansion of the eligibility rules would not have happened without months of CFIB’s relentless advocacy,” said Jasmin Guenette, CFIB’s vice-president of national affairs. “As it is clear there are no plans to make the carbon tax system revenue neutral for small businesses, the regime needs to be repealed.”

For more information on carbon tax rebates and eligibility rules, visit cfib.ca/carbontax.

Business owners can sign CFIB’s petition asking government to scrap the carbon tax here.

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