It’s Time to Fix Canada’s Broken Carbon Tax!

After months of relentless advocacy by CFIB, including gathering 8,500+ signed petitions from across the country, the federal government finally committed to returning the over $2.5 billion in carbon tax revenues owed to small businesses. Here’s what we know so far:

1. Around 600,000 SMEs in 8 provinces (all other than BC & QC) will be eligible for rebates of a portion of the carbon taxes they’ve paid. Previously, only 13,000 businesses were eligible for a rebate.
2. Incorporated firms with under 500 paid staff will be eligible, based on their number of T4 employees.
3. To unlock up to 5 years of rebates, businesses need to file their 2023 corporate income tax return before the deadline on July 15, 2024.
4. Rebates will be automatic, paid by the CRA, and will likely be paid out this fall at the earliest.
5. We don’t have information on the size of the rebate cheque, nor clarity on what types of workers would be included. We believe it will include both full- and part-time workers, including business owners and family members who are paid a salary.
6. The rebate will distribute up to $2.6 Billion that was set aside for SMEs from 2019 to March 2024. A similar approach is to be used for an annual rebate starting next year.

CFIB will continue to call on government to deliver the rebates as quickly as possible, ensure that there are sizeable rebates for the smallest businesses, and raise the share of future rebates back to 9% of carbon tax revenue, or more, as long as the tax remains in place.