In light of the April 28 federal election, the Canadian Chamber of Commerce and the Canadian Federation of Independent Business have called on the next government to fulfill their tax and regulatory reform promises and to free up internal trade.
“The business climate in Canada needs a complete overhaul. The next federal government must take swift and decisive action to keep our entrepreneurs from closing their doors over bad tax and regulatory policies,” CFIB President Dan Kelly said in a statement.
The federation said that the next government must focus on lowering the overall tax burden and tackling the cost of doing business for small businesses. It outlined five specific focus areas:
- Passing laws to remove carbon tax and ensuring tax-free small business carbon tax rebates, as well as extending the qualifying date for previous rebates to December 31, 2024
- Eliminating the federal small business tax rate immediately to offset the effect of tariffs on SMEs
- The Ottawa government legislating the planned lifetime capital gains exemption increase to $1.25 million
- Dropping the employment insurance premiums for small employers to the same rate paid by employees
- The Ottawa government coordinating with provinces to remove internal trade barriers through mutual recognition of each province’s rules, permits, and regulatory regimes
In addition, Canadian Chamber of Commerce President and CEO Candace Laing sought a commitment to long-term infrastructure investment.
“Our success is rooted in being a trading nation. However, if we can’t move it, we can’t sell it. We undermine our ability to grow our economy when Canadian businesses can’t get their goods to other provinces and territories or to our trade partners overseas. Expanding our existing infrastructure will ensure we reach our full potential,” Laing said in a statement.
She pointed out that public programs such as healthcare, retirement benefits, and the military need “a thriving business sector and tax revenue from Canadian individuals and businesses.”
“As the parties hit the campaign trail, they must remember what’s at stake: the livelihoods of Canadians depend on how we navigate this crisis with the US, how we address our economic challenges, and how we support Canadian business,” Laing said.
As per a recent survey by the CFIB, four in five small businesses are disrupted by the US-Canada trade war, while nine out of ten face business planning challenges.
“Small business confidence is now at an all-time low. It’s hard to compete, businesses are afraid to invest, and red tape is just killing productivity. Now we find ourselves in the midst of a trade war with our largest trading partner, in addition to a fresh round of Chinese tariffs,” Kelly said.
Thirty-two percent of business owners have transitioned to local suppliers and markets, while 27 percent intend to bolster their investment in Canada. A third is planning to limit US investment in the next six months. Nonetheless, just 3 in 10 businesses are confident that these moves will help mitigate the trade war’s effect.
“We must ensure Canadian small businesses are able to compete globally and have the time and resources to invest and grow their operations. As all parties build their platforms, we urge them to keep small business needs front and centre to help mitigate the impact of the tariffs and build a more prosperous Canada,” said Corinne Pohlmann, CFIB executive vice-president of advocacy, in a statement.
The CFIB conducted the “Your Voice January 2025 Survey” from January 9-31, obtaining 2,345 member responses. The “U.S.-Canada Trade War Survey” was launched on March 13 and is ongoing; results from 2,957 responses were pulled as of March 20.