Major Carbon Rebates for Small Businesses

OTTAWA — Small and medium-sized business owners across Canada can finally breathe a sigh of relief. Finance Minister Chrystia Freeland has revealed that the federal government will distribute long-awaited carbon pricing refunds before year’s end. This substantial payout, exceeding $2.5 billion, is expected to benefit around 600,000 businesses.

What You Need to Know

These rebates represent a significant return of the carbon price revenue collected from 2019 to 2024, particularly in areas where the federal fuel charge applies. The exact amount each business will receive depends on both its province and the number of employees. For instance, a business in Ontario with a workforce of 10 can anticipate a rebate of $4,010, while a much larger company in Saskatchewan with 499 employees could receive a staggering $576,844.

Support for Small Enterprises

Freeland emphasized the importance of these payments saying, “So these are real, significant sums of money. They're going to make a big difference to Canadian small businesses.”

Credit Card Transaction Fees Reduced

Additionally, in a move to further support small enterprises, the Finance Department announced a reduction in credit card transaction fees, effective October 19. This initiative is expected to save businesses approximately $1 billion over the next five years. Alongside this, a new code of conduct for the payment card industry will enhance transparency by helping businesses easily compare prices among different payment processors while dramatically reducing complaint resolution time to just 20 business days.

CFIB's Position on Carbon Tax

The Canadian Federation of Independent Business (CFIB) welcomed these announcements but remains vocal about its opposition to the carbon tax itself, stating that an overwhelming 83 percent of small firms are against it. The CFIB is urging all political entities to consider repealing the carbon tax at the earliest opportunity.

Trade Adjustments

Moreover, as part of recent trade adjustments, the federal government confirmed a list of Chinese-made aluminum and steel products that will face a 25 percent tariff starting October 22. This follows the implementation of a 100 percent tariff on Chinese-made electric vehicles as of October 1.

Conclusion

Stay tuned for more updates on how these financial changes can impact the landscape for small businesses in Canada!