NEWS FROM THE FIELD
Small Firms to Pay Almost
Half of the Federal
Carbon Tax; Get Seven Per
Cent Back
The majority of small businesses in
Saskatchewan, Manitoba, Ontario and New
Brunswick oppose the federal carbon backstop
plan, says the Canadian Federation of
Independent Business (CFIB). The plan unfairly
burdens small businesses, which will
contribute almost 50 per cent of carbon tax
revenues along with municipalities, universities,
school boards and hospitals, but will
receive just seven per cent back in the form
of rebates and grants.
“With consumers receiving 90 per cent
of the ‘Climate Action Incentive’ payments
and many large emitters receiving carbon
tax exemptions, small businesses are
left holding the bag,” said CFIB president
Dan Kelly.
“The government’s technical documents
state that small businesses are expected
to simply pass their added costs down to
consumers, but 80 per cent of small firms
in the four provinces report they will be
able to pass on less than one quarter of the
new costs,” Kelly added. “In fact, over half
of small firms said they will have to eat the
entire new cost, on top of the seven years of
CPP premium increases already underway.
These costs will hamstring their ability to
compete, and paradoxically, invest in emissions
reducing solutions.”
In its new survey of small businesses in
the four provinces where the federal backstop
will apply, CFIB found that an overwhelming
majority (87 per cent) oppose
the government’s carbon tax plan, including
many who support the concept of a carbon
tax in general. Additionally:
• 84 per cent of small businesses are
already taking action to reduce their
carbon footprint.
• 71 per cent say that the added cost of
the carbon tax will make it harder for
them to further invest in reducing their
emissions.
• 83 per cent believe the current rebate
plan, where 90 per cent of rebates will be
allocated to households, is unfair.
• 84 per cent would like to get back the
same share in grants and rebates as they
pay in carbon taxes.
“Small business owners care about
the environment and have already been
taking steps to reduce their emissions.
However, the federal carbon tax plan
punishes them with new costs instead of
providing them the tools they need to further
reduce their carbon footprint,” concluded
Kelly. “We are urging the federal
government not to proceed with this unfair
and unaffordable plan, and find better
ways to work with provinces to reduce
emissions without negatively affecting
small businesses.”
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