The Canadian Federation of Independent Business urges the newly elected government to aid small businesses affected by the tariff fight with the US and China.
The organization expressed its intent to collaborate with government and opposition parties on critical small business priorities such as the quick revert of money from Canadian counter tariffs to Canadian small businesses, the passage of legislation formally removing carbon tax, raising the lifetime capital gains exemption to $1.25 million, dropping the federal small business tax rate to 0 percent for the foreseeable future, the erosion of internal trade barriers, accessibility to immediate expensing for all businesses in all sectors, and reducing smaller employers’ employment insurance premiums to the same rate paid by employees.
The CFIB seeks to ensure that, as promised, small business carbon tax rebates are provided without tax, and the remaining $500 million in 2024-25 carbon tax rebates are returned to small businesses. It is also pushing for implementing the promised Canadian entrepreneurs’ incentive to lower capital gains taxes on up to $2 million after a business sale. Moreover, the organization is calling on the government to engage with provinces to help remove trade barriers through mutual recognition.
“Small businesses are looking to the new government to follow through on its campaign promises, particularly around dropping the increase in the capital gains inclusion rate, removing the consumer carbon tax and knocking down interprovincial trade barriers. CFIB stands ready to work with all elected representatives to make those promises a reality,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy, in a statement.
Parliament is expected to resume in the coming weeks. The CFIB congratulated the new Prime Minister, Mark Carney and the elected members of parliament.
“It was good to hear both Prime Minister Carney and Opposition Leader Poilievre pledging to work together to address the threat of U.S. tariffs in a minority Parliament. Now that we have a degree of political clarity, government needs to turn its attention to reducing taxes, cutting red tape and providing much-needed economic certainty,” CFIB President Dan Kelly said. “Small business confidence is near record lows, and CFIB is forecasting an extremely difficult second quarter for Canada’s economy. We urgently need measures that would incentivize investment and help small businesses diversify their markets and suppliers.”