Ottawa owes Manitoba small businesses $144M in carbon tax rebates

Hey there, time traveller!
This article was published 12/02/2024 (584 days ago), so information in it may no longer be current.

The Canadian Federation of Independent Business said the federal government failed to return $144 million in carbon tax rebates owed Manitoba small businesses.

Group’s regional executive Brianna Solberg, in an interview with the Sun on Friday, said despite promises to support local enterprises, Ottawa has yet to deliver on its commitment, leaving many businesses struggling to cope with soaring operational costs.

“The federal government is sitting on $144 million in carbon tax rebates that should be in the hands of Manitoba small businesses,” Solberg said. “Heading into 2024, 19 per cent of Manitoba businesses are considering closing their doors as many are struggling to keep up with skyrocketing business costs.”

As April 1, 2024, draws near, when the federal carbon tax is set to increase, Solberg underlined the challenges faced by businesses: “Food, rent, utility, and insurance costs, etc. have all increased, not to mention, the federal carbon tax is slated to go up on April 1, 2024. It’s no wonder so many business owners are finding it hard to see a future where they can recover and survive — they are simply drowning in increased costs.”

CFIB is urging the federal government to fulfill its commitment by promptly returning the $2.5 billion owed to small businesses in Ontario, Alberta, Manitoba, and Saskatchewan, noting the need for immediate action.

“The government can show small firms that it’s listening to them by freezing the carbon tax while fixing the broken carbon backstop system,” she said. “The carbon tax system is designed so that individuals get more back than what they pay, and businesses get only a fraction of the leftover 10 per cent. We need to find a way to get this money back into the hands of business owners. They need it now more than ever.”

The Sun reached out by email to Environment Minister Steven Guilbeault for comment on Solberg’s remarks but didn’t receive a response.

Meanwhile, concerns are mounting as CFIB questions whether the federal government’s changes to double the rural consumer rebate will impact small businesses negatively. The group tasked the government to reject Senate amendments, expedite the passing of Bill C-234 to exempt natural gas and propane used for on-farm activities, freeze the carbon tax at its current level, and exempt all heating fuels, including natural gas.

“The Deputy Prime Minister’s office confirmed the changes will be funded through an ‘excess allocation in future years,’ which we interpret as the 10 per cent that is supposed to be returned to small business,” Solberg said. “Canada’s carbon tax system is a mess and is deeply unfair to Canada’s small businesses who are the second-largest payer of the levy after consumers. It’s not surprising that a strong majority of small firms are now opposed to the federal carbon tax regime.”

As businesses face new challenges in 2024, CFIB has initiated a petition to draw attention to the plight of small businesses and advocate for fairness in the carbon tax system.

» aodutola@brandonsun.com

» X: @AbiolaOdutola