CFIB: Feds holding billions in carbon taxes that should be returned to small businesses

OTTAWA — The federal government has been sitting on $2.5 billion in carbon tax revenue collected since 2019 despite repeated promises to return it to small businesses in Ontario, Manitoba, Saskatchewan and Alberta, says the Canadian Federation of Independent Business (CFIB). 

The federal government pledged to return 10 % of carbon tax revenue back to small businesses, farmers and Indigenous people but has returned almost zero since the tax began. On top of that, the carbon tax is increasing to $80 per tonne on April 1. 

“This is particularly troubling as the tax was expanded to all four Atlantic provinces in July of last year. There is no mechanism in place to return a dime to small businesses paying the federal carbon tax in eight provinces,” said CFIB president Dan Kelly. “No wonder some Indigenous organizations are taking the federal government to court.” 

Making matters worse, CFIB estimates small businesses actually pay 40 % of the costs of the carbon tax, yet they are only supposed to receive up to 10 % of the revenue once Ottawa gets around to figuring out a way to return the dollars as promised.