Small businesses-including farms-await Carbon Tax rebates

The Canadian Federation of Independent Business (CFIB) says it believes that Ottawa owes an estimated $2.5 billion in carbon tax rebates to Canada’s small and medium-sized enterprises (SMEs) – including small farms.

This overdue payment spans five years and affects businesses in eight provinces, highlighting a pressing issue within the carbon tax framework.

Initially aimed at encouraging environmental sustainability – which of course farmers understand, but the carbon tax has inadvertently placed a financial strain on SMEs. In Ontario, Manitoba, Saskatchewan, and Alberta, businesses are due rebates ranging from $2,600 to $7,000.

For SMEs in the four Atlantic provinces, which joined the carbon tax program more recently, expected rebates range from $630 to $1,060 for just a partial year.

CFIB president Dan Kelly emphasized the unfairness of the situation, noting the substantial impact of these funds on small business operations.

The delay in disbursing these rebates is not only a financial concern but also a matter of principle, highlighting the need for equitable treatment of all stakeholders in environmental policies.

Further complicating matters, the federal government plans to reduce SME rebates from 9% to 5% starting in 2024, a move criticized by the CFIB. This reduction is seen as detrimental to small businesses, especially when compared to increased rebates for other groups.