Ottawa Withholding $2.5 Billion in Carbon Tax Revenue Meant for Small Businesses, Business Group Says

Published on February 9, 2024

The Canadian Federation of Independent Business (CFIB) has highlighted a significant delay in the distribution of carbon tax revenues by the federal government, with $2.5 billion accumulated since 2019 yet to be disbursed to small businesses in Ontario, Manitoba, Saskatchewan, and Alberta. Although the government committed to refund 10 percent of carbon tax revenue to small businesses, farmers, and Indigenous communities, CFIB reports in a survey on carbon pricing that virtually none of it has been returned since the tax’s implementation. Additionally, there’s an anticipated increase in the carbon tax to $80 per tonne starting April 1. On Feb. 5, a proposal put forward by Conservative Leader Pierre Poilievre sought to persuade the Liberal government to abandon the planned carbon tax hike set for April 1. The motion did not pass, with 209 votes against and 119 in support. The Conservatives supported the motion, while the Liberals, NDP, BQ, and Greens voted against it, except for Liberal MP Ken McDonald....