The Canadian Federation of Independent Business (CFIB) is bringing attention to billions of dollars in carbon tax rebates that have yet to be distributed back to small and medium-sized businesses across Canada by the federal government. Saskatchewan is owed over $300 million of the over $2.5 billion in fuel charge proceeds, according to CFIB estimates.
“Small businesses, especially in Saskatchewan, they’re being almost robbed of what they deserve really,” said SeoRhin Yoo, CFIB policy analyst for the Prairies and Northern regions. “They promised nine per cent in rebates, however, small businesses have actually seen less than one per cent of it being rolled out.”
The CFIB is calling for an immediate return of these funds through a one-time payment, as well as scrapping a federal plan to cut rebates promised to small businesses from nine per cent to five per cent starting this year. Yoo added cutting these rebates going forward would cause businesses to lose out on a potential $3.4 billion between 2024 and 2029.
“It’s really a slap in the face for a lot of small businesses who have been waiting patiently for the past five years for the rebates to be rolled out just to be told we’re going to be cutting your funds.” Yoo said.
Similar sentiments were echoed by the Saskatchewan Chamber of Commerce, which said it has been calling on the federal government to pay back the funds for several years.
She added the sooner the rebates are received, the faster businesses can achieve carbon-neutral goals.
“It’s really critical that our small and medium sized businesses receive these funds so they can be deployed for investments into technology, infrastructure, processes and systems that advance- help them advance towards that priority of achieving net zero,” said Ramaswany. “If the federal government wants Canada and provinces to be ahead of the game on that particular issue, these monies are definitely needed.”
The Ministry of Environment said in a statement that it is “preparing to return over $2.5 billion of fuel charge proceeds to emissions-intensive and trade-exposed small and medium-sized enterprises.” Both the CFIB and the Chamber are calling for the scope of businesses to be expanded, which according to the CFIB could net SMEs close to $7,000.
Ramaswany added there currently is no mechanism put in place by the government to deliver the stalled rebates, but she remains “optimistic” it will get done.
Global News reached out to the Ministry of Environment to get clarification on a timeline for when these business rebates could be distributed, but did not receive an answer before deadline.
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