CFIB seeks action on tax rebate program

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This article was published 09/02/2024 (638 days ago), so information in it may no longer be current.

A lobby group is calling on Ottawa to immediately disburse carbon tax revenue rebates to Manitoba businesses.

Manitoba companies are owed nearly $144 million through a federal carbon tax rebate program, the Canadian Federation of Independent Business says.

“It’s an extremely difficult time to be a business owner,” said Brianna Solberg, CFIB director of legislative affairs for the Prairies and northern Canada. “Many (companies) are strapped for cash, and getting this money back would… help them financially.”

Paying businesses through the Fuel Charge Proceeds Return Program would also signify the feds understand affordability concerns facing the private sector, Solberg added.

Ottawa promised $2.5 billion in carbon tax rebates to businesses in Manitoba, Alberta, Ontario and Saskatchewan in 2022. Just under $144 million was tabbed for Manitoba.

Also in 2022, the government sought organizations to distribute money through the program. It outlined a deadline of funding decisions, and choosing who’d be program dispensers, by mid-2023.

All rebates should be delivered by March 31, 2025, according to the government’s public timeline.

However, there’s been radio silence on the program, Solberg said. “We’ve seen none of that money returned.”

Neither the federal environment and climate change minister’s office nor the Department of Finance responded to questions by print deadline Thursday.

Environment and Climate Change Canada is administering the program.

The feds have pledged to distribute 10 per cent of carbon tax revenue to small businesses, farmers and Indigenous groups.

The CFIB estimates small businesses pay 40 per cent of the carbon tax. As a result, the national lobbyist wants Ottawa to create a plan raising its rebate for businesses to 40 per cent.

However, first, the feds must develop a rebate formula to return the 10 per cent it promised Canadian businesses, the CFIB outlined in a news release.

The federal program’s rebates will target small- and medium-sized businesses, a government webpage reads.

“We’re just making sure we hold Ottawa accountable on this,” Solberg said.

The CFIB has a number of requests for Ottawa, including expediting the passage of Bill C-234 to exempt natural gas and propane use on farms, and exempting all heating fuels.

The carbon tax is set to increase to $80 per tonne April 1.

gabrielle.piche@winnipegfreepress.com