by MorinvilleNews.com Staff
The Canadian Federation of Independent Business (CFIB) has welcomed the federal government’s announcement of several significant changes aimed at alleviating the cost pressures faced by Canadian small business owners. These changes come after months of advocacy from the CFIB, which included over 31,000 signed petitions from small business owners addressing these pressing issues.
“CFIB is relieved to learn the federal government will return the $2.5 billion small business share of carbon tax revenue that has been stuck in Ottawa for the past five years,” said Dan Kelly, CFIB president. “It’s good news that this money will be returned to small businesses by direct deposit or cheque before the end of the year. These are not trivial amounts of money. For example, a company with 10 employees in Alberta will receive nearly $6,000 in carbon tax rebates, a 25-person company in Saskatchewan will receive nearly $29,000, a 50-person business in Manitoba will receive $24,000, and a 100-person employer in Ontario will get $40,000.”
Rebates will be based on the number of T4s issued by an employer, including those issued to the business owner, their family, part-time, and seasonal workers, as well as positions that turn over. Smaller rebates will be available for SMEs in all four Atlantic provinces, as they have only paid the federal carbon tax for one year. Only incorporated firms (CCPCs) with 1 to 499 employees will be eligible for these rebates. CFIB is also pleased that the federal government has extended the deadline to December 31, 2024, for businesses that have not yet filed their 2023 corporate income taxes. Despite this progress, the CFIB noted that a vast majority of small firms (83%) now oppose the carbon tax and will continue to urge all political parties to eliminate it as soon as possible.
Starting October 19, 2024, the cost of accepting credit cards will decrease by an average of 27% for small businesses processing less than $300,000 in annual Visa sales and $175,000 in Mastercard sales. Small firms will qualify for a 0.95% average interchange rate for in-store sales, alongside a 0.1% reduction in e-commerce fees. “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 these 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 stated. “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.” Additionally, the CFIB will encourage the industry to regularly review and increase the thresholds to allow more small firms to qualify for these savings.
CFIB says today’s revisions to the Code represent a positive step toward improving fairness in the payments industry for small firms. The updates include an improved process for timelines and expectations for complaints and enhanced protection for contracted bundles. “Updates to the Code will provide greater clarity and help businesses understand what rates they will pay. These changes have been a long time coming and will lead to a better balance of market power between small firms and industry giants,” Kelly concluded.
