The Canadian Federation of Independent Business (CFIB) has welcomed the federal government’s announcement that it would soon return the remaining $623 million to be distributed in 2024–25 Canada carbon tax rebate payments to small businesses.
According to CFIB’s media release, 600,000 small businesses across eight provinces would get these rebates, with amounts varying across provinces and based on the number of T4 forms issued by employers.
CFIB said the Canada Revenue Agency will automatically issue rebates to eligible businesses in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
CFIB noted that the provinces would receive the following total rebates:
- Ontario: $338.6 million
- Alberta: $159.5 million
- Saskatchewan: $42 million
- Manitoba: $34.3 million
- Nova Scotia: $18.3 million
- Newfoundland and Labrador: $14.1 million
- New Brunswick: $13.4 million
- Prince Edward Island: $2.9 million
CFIB noted that an average small business would get $1,000. Per province, CFIB listed example rebates for an employer with 10 full-time/part-time employees:
- Ontario: $980
- Alberta: $1,200
- Saskatchewan: $1,530
- Manitoba: $1,110
- Nova Scotia: $780
- Newfoundland and Labrador: $1,270
- New Brunswick: $690
- Prince Edward Island: $560
“This is a final win for small businesses who paid into the carbon tax system for years without seeing a dime in return,” said Corinne Pohlmann, CFIB executive vice president of advocacy, in the media release.
“This is good news for small businesses who have been waiting for the money they’re owed,” added Dan Kelly, CFIB president, in the media release. “After another challenging year, small firms could really use this chunk of cash.”
However, Kelly acknowledged that work remained to be done.
“We’re calling on Ottawa to act quickly and pass legislation to ensure the rebates are tax-free and to deliver on government’s promise to extend the original filing deadline so that more small firms can qualify,” Kelly said.
CFIB noted that the 2025 budget proposed legislation to move forward with the changes.
“This will end the long battle against the consumer/small business carbon tax,” Kelly said.
CFIB advocacy
“While the federal carbon tax has been unfair to small businesses from the start, small firms will finally receive some relief and long-awaited clarity,” Pohlmann said in CFIB’s media release. “This wouldn’t have happened without CFIB’s relentless advocacy.”
According to Pohlmann, CFIB had more than 200 meetings with government officials to convince provincial premiers to get on board and collect over 27,000 signed petitions.
CFIB shared that the federal government finally distributed $2.5 billion in December 2024 after delaying the rebates promised to small businesses for five years. CFIB pointed out that this amount was just a portion of the total carbon tax revenue shelled out by small businesses.
“It is a relief that the government has cancelled this carbon tax and delivered on the final annual installment to small firms,” Kelly said.
CFIB noted that consumers received their final quarterly rebate last April.