Surveys from the CFIB and KPMG reveal the needs of millions of Canadian businesses
The Canadian government will deliver its budget next month and for millions of business owners, it will be a critical moment that could deliver relief or a killer blow to their finances.
With many still trying to rebuild from the pandemic amid the pressures of high interest rates and inflation, plus the added costs of CEBA loan repayments, two separate surveys highlight how they are looking to Ottawa to ease the cost of doing business.
It comes as a report this week warned about a ‘perfect storm’ being faced by businesses with a rise in those getting into hot water.
The Canadian Federation of Independent Business surveyed its members and found that 77% of respondents say addressing price rises and overall costs should be a government priority, while 74% want a reduction in their tax burden to be paramount.
"Rising costs on all fronts are crushing small businesses, and we're only three months into the new year. While we appreciate that governments are focused on the cost-of-living pressure, we need to see that same vigour applied to costs faced by small businesses," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. "Business owners can't keep absorbing the hits without negative consequences for their business. They need meaningful government action on cost relief now."
Businesses are facing increased costs from EI and CPP hikes and will see the carbon tax jump to $80 per tonne on April 1 along with some other industry specific pressures.
Going green
Meanwhile, a poll from KPMG in Canada has found that 83% of small and medium sized businesses want more help and incentives to decarbonize, with 80% supporting federal 'green' investments or incentives to attract foreign companies to locate in Canada.
"Meeting today's climate challenges and retooling the economy requires significant business investment to decarbonize and build the net-zero industries and technologies of the future," says Lucy Iacovelli, Canadian Managing Partner, Tax and Legal, KPMG in Canada. "To deliver, the federal government needs to make it fast and easy for companies to access the clean energy investment tax credits or they risk falling further behind the U.S. and other major economies. Canadian businesses are relying on this support to help ease the financial burden of emissions reduction and capitalize on these historic economic opportunities."
With 78% of respondents agreeing that decarbonization will result in more jobs, growth and manufacturing in Canada, they are calling on the government to fast-track business investment tax credits with most intending to use available incentives.
"Some business leaders are winning the race to decarbonize and are investing now to carve out exciting opportunities and compete in the future economy," says Dino Infanti, Partner, National Leader, Private Enterprise Tax, KPMG in Canada. "However, the poll findings show that small- and medium-sized business leaders face unique barriers to financing decarbonization and qualifying for the tax incentives, whether it is a lack of up-front capital, or the uncertainty and complexity involved in qualifying."
