(File photo/battlefordsNOW Staff)
Federal carbon tax

Battlefords Chamber says carbon tax hurting small business

Nov 12, 2023 | 8:00 AM

The Battlefords Chamber of Commerce says there needs to be more help for small businesses with the federal carbon tax putting pressure on their bottom line.

Chief Operating Officer Linda Machniak said the issue challenges businesses in many ways.

The fund was originally intended to allow businesses to tap into it to get grants to help support their efforts to “green” their businesses and/or reduce their carbon footprint.

“The frustration is that the federal government has not only changed the goal-posts in moving away from their promise to grant to medium- and small-sized businesses support for their greening and updating their businesses to allow for a reduced carbon footprint, but they’ve even changed the game,” she said. “Now it appears that small businesses will not be able to tap into the fund.”

Machniak said a number of factors are causing stress to small businesses.

“The government has changed the rules,” she said. “They haven’t provided anything out of the fund that I’m aware of, and they are eliminating small and medium-sized businesses from taking advantage or having the opportunity to participate in that program. So, certainly, there would be frustration from the business community on that front.”

Machniak mentioned the local chamber put a policy forward at the Canadian Chamber of Commerce meeting a year ago that was approved related to the matter.

She added it’s an issue that the local chamber has been fighting for, as well as the provincial chamber, and the national chamber.

“I know it’s something that all of us have been advocating for – to be sure that small businesses were included in the mix, which is what the policy announcement was in the beginning,” Machniak said. “They were originally told that they could be included, but nothing has ever come out to them in that regard. So many have probably moved on. If they were planning to reduce their carbon footprint, they have probably done it on their own, to do the right thing.”

The Canadian Federation of Independent Business (CFIB), representing small and medium-sized businesses across Canada, says small businesses pay 40 per cent of the costs of the carbon tax, while the federal government has promised to return only 10 per cent.

The CFIB says while across Canada 85 per cent of its small business members surveyed said they are opposed to the carbon tax and want to see it scrapped, that number is 93 per cent in Saskatchewan.

CFIB President Dan Kelly says while households receive rebates, small businesses don’t receive the same incentives.

Kelly added that small businesses have been raising their concerns with the carbon tax for years.

“Small businesses essentially pay the carbon tax but get nothing back in the rebates games,” he said. “The federal government promised that 10 per cent of the proceeds from carbon tax would be returned to small businesses. But the tax has been in place since 2019 and virtually no money has flowed back to small businesses. They’ve collected $2.5 billion that has been dedicated to small firms, and they are still designing a program to get the money back. Even then it’s only supposed to go back to a handful of small businesses that pay the tax. This is a terrible way of administering taxation.”

CFIB is asking the federal government to revamp the carbon tax system so it is more fair to small businesses.

– with files from Derek Craddock

Angela.Brown@pattisonmedia.com

On Twitter: @battlefordsnow

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