In December, over $2.5 billion will be distributed to approximately 600,000 businesses across the country, providing a welcome financial boost as the economy continues to recover. These payments represent a portion of the carbon price revenue collected from 2019 to 2024, specifically benefiting businesses in regions where the federal fuel charge applies.
For instance, a small business in Ontario with a workforce of 10 can expect around $4,010, while a larger operation in Saskatchewan employing 499 people will receive an impressive $576,844. This influx of funds is expected to significantly alleviate some of the financial pressures faced by many entrepreneurs.
In addition to the refunds, the federal government has announced measures which are aimed at reducing costs for small businesses. For example, starting October 19, credit card transaction fees will be lowered, potentially saving these businesses about $1 billion over the next five years.
To complement this, a new code of conduct for the payment card industry will help to enhance transparency, allowing businesses to easily compare prices and services from various payment processors. This reform also promises to streamline complaint handling, reducing response times from several weeks to just 20 business days.
While the Canadian Federation of Independent Business (CFIB) has praised these initiatives, they also voiced their ongoing opposition to the carbon tax itself. A significant majority, about 83 per cent, of small business owners are against the tax, with the CFIB advocating for its elimination. The group emphasised that while the refund is a positive step, the overarching concern remains the burden of the carbon tax on small enterprises.
In a broader context, the federal government is also taking steps to impose tariffs on certain imported goods. A 25 per cent tariff on specific Chinese-made aluminum and steel products will come into effect on October 22. This follows the recent imposition of a 100 per cent tariff on Chinese-made electric vehicles, which is already in place.
These announcements signal a proactive approach by the federal government to address the challenges that are currently faced by small businesses, aiming to provide both immediate financial relief and a more favourable operating environment. As the year progresses, these measures may significantly impact the sustainability and growth prospects of Canadian small enterprises, helping them navigate an increasingly competitive landscape.
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