Canadian small business group calls for relief at the pump amid high fuel prices

A group of Canadian small businesses is calling on federal and provincial governments to temporarily eliminate or reduce fuel taxes.

The Canadian Federation of Independent Business says record gasoline prices, supply chain issues and labor shortages have sent the cost of doing business skyrocketing.

It says rising transportation and fuel costs have prompted 92% of small businesses to raise prices over the past 12 months.

The business group says governments should make doing business in Canada more affordable by also suspending planned carbon tax hikes.

It also calls for the small business deduction threshold to be increased from $500,000 to $600,000, as is currently the case in Saskatchewan, and to index the threshold to inflation each year.

The request comes as Canada’s prime ministers gather at the 2022 Council of the Federation meeting in Victoria.

“Every penny counts for small businesses, especially when facing skyrocketing input costs and labor and product shortages,” said Corinne Pohlmann, senior vice president of CFIB National Affairs, in a statement.

“Three provinces – Ontario, Alberta and Newfoundland and Labrador – provided temporary relief at the pump. Now the federal government and other provincial governments must follow their lead.

She added that more than half of small businesses in Canada have yet to return to normal revenue levels and that premiers should make small business recovery a top priority.

In May, 460,060 Canadian businesses received the Canada Emergency Wage Subsidy, with the total value of the subsidies exceeding $100 billion.

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