B.C. Chamber of Commerce calls for tax relief ahead of provincial budget

A major organization representing businesses is pressuring the B.C government to throw entrepreneurs a lifeline, ahead of the provincial budget.

“What our members are telling us is that times are tough, they are struggling financially and they need help,” Fiona Famulak, president and CEO of the B.C. Chamber of Commerce told Global News.

The group, which represents 36,000 businesses along with 100 smaller chambers of commerce and boards of trade, says permit delays, increased taxes and new financial obligations are adding up to major hurdles, particularly for small and medium sized businesses.

That’s been the experience for Lisa Smith, who owns Port Moody’s Mint Hair Lounge.

Smith, who employs 16 people, says she’s still struggling to catch up from the COVID-19 pandemic.

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She said new costs imposed by the government, like five days of employer-paid sick leave, are eroding an already shaky bottom line.

“I understand that everybody is entitled to have sick pay. In my industry it’s never been there for us, so the importance of it being there is huge. I believe every person, every working person, should be entitled to have sick days, stat holidays, all the time they’re entitled to,” she said.

“The problem I am having is that the cost is continually coming to the small business owner.”

It’s not just the new sick pay regime that’s adding costs.

B.C.’s minimum wage has increased every year for the last five years, businesses must pay the Employer Health Tax which was implemented to eliminate MSP payments, and the province has added a new statutory holiday in September in recognition of Indigenous reconciliation.

“All of Canada should be educated of why it is in place, but (to) have two statutory holidays in one month is very hard on the small business owner,” Smith said.

The provincial government does not provide financial support to businesses to cover staff pay during holidays.

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Premier David Eby said Wednesday the province is working with businesses, and provided significant support during the pandemic.

“We have a lot of work to continue to do to support our small businesses and I look forward to doing that with our chambers,” he said.

Famulak said her organization does not oppose ideas like increased minimum wage or new statutory holidays, but that as costs go up in one area there needs to be balance in others if businesses are to stay afloat.

The chamber is specifically pressing the government to lift the payroll floor for businesses to avoid paying the EHT as a solution to reduce cost pressures.

“We’re asking government to consider, for example, focusing on the Employer Health Tax, increasing that exemption level from $500,000 to $1.5 million, to give the small and medium businesses a break and allow them to plow that money into labour force enhancement, innovation,” she said.

“Now is the time. If we’re able to unlock that and let our businesses be on their feet, then that helps to create good paying jobs, it helps to support families, drive health y communities.”

Back at Mint Hair Lounge, Smith said she’s doing what she can to keep the lights on, but that she believes the government needs to offer help of some kind.

“With inflation being a thing and everything starting to rise, I can only raise my prices so much before clients start to leave,” she said.

“I personally don’t want to go into debt to keep the doors open, and I know a lot of fellow salon owners that have had to close their doors.”