Courtesy Canadian Federation of Independent Business
While Ottawa is finally moving forward with returning over $2.5 billion in promised carbon tax rebates to small businesses, a strong majority (83%) are opposed to the entire federal carbon tax system and want it scrapped, says the Canadian Federation of Independent Business (CFIB).
“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. 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,” said Dan Kelly, CFIB president.
“The entire carbon tax system has been unfair to small businesses for far too long,” Kelly added. “And with 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.”
Here’s how to qualify for carbon tax rebates as a business
The Canada Carbon Rebate for SMEs will return $2.5 billion in carbon tax revenue collected from small business in Alberta, Saskatchewan, Manitoba, Ontario and the four Atlantic provinces over the past five years. CFIB estimates this represents less than one-quarter of the amount paid by businesses.
To be eligible, business owners in the eight provinces must file their 2023 corporate income tax return by July 15, 2024. Only incorporated firms with 499 paid staff or fewer will be eligible. CFIB believes this will be based on the number of T4s each firm issues in a given year. Rebates will be automatic and paid by the Canada Revenue Agency (CRA) in the form of a refundable tax credit.
“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is clear there are no plans to make the carbon tax system revenue neutral for small businesses, the regime needs to be repealed.”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.
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 95,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
