A small business advocacy organization has renewed its calls for an end to the carbon tax, highlighting frustrations among Canadian small business owners who recently discovered that the federal carbon rebate for small businesses is being treated as taxable income.
In a letter to Finance Minister Chrystia Freeland, the Canadian Federation of Independent Business (CFIB) expressed concerns about the rebate’s taxable status, which it deems unfair to small businesses across Canada. Dan Kelly, CFIB’s President and CEO, called the decision “deeply offensive to small businesses,” pointing to survey results showing 83% of its 97,000 members support ending the carbon tax altogether.
In a press release issued Tuesday, CFIB noted that the Canada Revenue Agency had initially interpreted the rebate as non-taxable, only for the Finance Department to reach a conflicting decision. The Canadian Press reached out to both the CRA and Freeland’s office for comment on Monday, but responses were delayed due to the Remembrance Day holiday.