TORONTO , Oct. 1, 2024 /CNW/ – The Canadian Federation of Independent Business (CFIB) welcomes today’s announcement by the federal government on several important changes that will reduce some of the host of cost pressures facing Canadian small business owners.
These announcements follow many months of CFIB’s advocacy work and over 31,000 signed petitions from small business owners on these issues.
On carbon tax
“CFIB is relieved to learn the federal government will return the $2.5 billion small business share of carbon tax revenue that has been stuck in Ottawa for the past five years,” said Dan Kelly , CFIB president. “It’s good news that this money will be returned to small businesses by direct deposit or cheque before the end of the year. These are not trivial amounts of money. For example, a company with 10 employees in Alberta will receive nearly $6,000 in carbon tax rebates, a 25-person company in Saskatchewan will receive nearly $29,000 , a 50-person business in Manitoba will receive $24,000 and a 100-person employer in Ontario will get $40,000 .”
Rebates will be based on the number of T4s issued by an employer, including those issued to the business owner, their family, part-time, and seasonal workers, as well as for positions that turn over. Smaller rebates will be received by SMEs in all four Atlantic provinces as they have paid the federal carbon tax for only one year. Only incorporated firms (CCPCs) with between 1-499 employees will be eligible.
CFIB is pleased that the federal government has extended the deadline to December 31, 2024 , for those who have not yet filed their 2023 corporate income taxes.
While CFIB welcomes the federal government delivering on its commitment to return a portion of carbon tax revenues to small businesses, the vast majority of small firms (83%) now oppose the carbon tax. CFIB will continue to call on all political parties to scrap the carbon tax at the earliest possibility.
On credit card fee reductions
As of October 19, 2024 , the cost of accepting credit cards will be reduced by an average of 27% for small businesses processing less than $300,000 in annual Visa sales and $175,000 in Mastercard sales. Small firms will qualify for a 0.95% average interchange rate for in-store sales and a 0.1% cut in ecommerce fees.
“Most small firms should see savings of between $300 and $400 for every $100,000 in Visa sales and $200 for every $100,000 in annual Mastercard sales,” Kelly added. CFIB estimates that over 60% of its 97,000 members will qualify for the savings.
“CFIB will be closely monitoring all credit card processors to ensure the full value of the savings is passed on to the small businesses counting on this relief,” Kelly said. “We are pleased that the federal government has made this expectation very clear, and we will be working with Minister Freeland, Visa and Mastercard to ensure card processors do not try to keep the savings intended for small firms.”
CFIB will also encourage the industry to regularly review and increase the thresholds to allow more small firms to qualify for the savings.
On the Code of Conduct for the Payment Card Industry
Today’s revisions to the Code are a positive step in improving fairness in the payments industry for small firms, including an improved process around timelines and expectations for complaints and better protection around contracted bundles.
“Updates to the Code will provide greater clarity and help businesses understand what rates they will pay. These changes have been a long time coming and will lead to a better balance of market power between small firms and industry giants,” Kelly added.
For more on CFIB’s work to reduce credit card fees for small businesses, visit cfib.ca/credit-cards . For more information on carbon tax rebates and eligibility rules, visit cfib.ca/carbontax .
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business