The federal government just announced it will impose a federal carbon tax in four provinces (New Brunswick, Ontario, Manitoba & Saskatchewan) in April 2019. The Federal government already picked a fight with business owners over the small business tax changes in 2017, and now it looks like there will be another BIG fight in 2018 over carbon taxes!
What is the federal carbon tax plan?
This tax begins April 1, 2019, provinces under the federal plan will have a carbon tax of $20 per tonne of CO2 emissions, which will increase by $10 every year to $50 per tonne by 2022. These taxes will be applied to combustible fuels such as gasoline, diesel, natural gas and propane.
Large emitters, such as big manufacturers, mining and the oil and gas sector, have a separate carbon pricing plan entirely and some will have their rules eased so they are allowed to emit more CO2.
Calculate the direct cost to your business
Where is the money going?
Of the carbon tax revenues collect, 90% will be rebated to consumers, regardless of their individual emissions. Just 10% of revenues will be used to fund programs and additional relief measures for small businesses and other groups including universities, hospitals, schools and municipalities. The federal government will unfairly hand rebates to residents, while exempting some big emitters.
It looks like your business will be left holding the carbon tax bag; getting back only a small fraction of your carbon tax bill. The federal government expects you to simply pass the costs onto customers. However, new CFIB research shows that nearly 81% of Saskatchewan businesses would be able to pass along only 25% or less of carbon tax costs to their customers.
To make matters worse, CPP increases begin in 2019
In 2019, CPP premiums will start to increase annually for the next five years. This means that your labour costs will increase too, and your employees will get less in their paycheques. Premiums are set to increase by 20% from 2019-2023!
We are fighting back!
We know the majority of you have already implemented environmentally friendly measures in your business and believe punitive measures, like a carbon tax is the least effective way to reduce emissions.
That’s why CFIB has been fighting for the past two years! To date, 1,600 business owners have signed CFIB’s petition opposing a national carbon tax. Your views are making difference!
Saskatchewan government continues to say ‘No’: Premier Moe has said a forced carbon tax is poor environmental policy and that will reduce Saskatchewan’s GDP by almost $16 billion, as well as cost an extra $1,260 per family per year, with virtually no impact on emissions. In fact. 91% of Saskatchewan businesses support the province legally challenging the federal carbon tax plan.
Join the fight! We know your business cannot afford the combined costs of five years of CPP increases and four years of costly federal carbon tax increases.
That’s why we are asking Premier Moe to help us stop the federal government from raising taxes on your business by continuing to aggressively oppose the federally imposed carbon tax and pull the province’s support for the CPP hikes. Sign our petition today!