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Smaller businesses to start receiving carbon rebates today

Small Businesses to Receive Federal Carbon Rebates

Approximately 600,000 small businesses across Canada are set to receive their long-awaited federal carbon rebates starting today. The federal government has committed to returning around $2.5 billion in carbon pricing revenue collected from small and medium-sized businesses since 2019.

Initially, the plan was to distribute the funds annually through various programs aimed at promoting energy-efficient investments. However, most of these initiatives failed to materialize, leaving small businesses feeling neglected as they continued to contribute a significant portion of carbon pricing revenue without receiving any benefits in return.

Individual businesses will begin receiving their rebates today, with the amount varying based on the province in which they operate and the number of employees they have. Small Business Minister Rechie Valdez announced that payments are being sent out earlier than expected.

For example, a small business with 10 employees in Winnipeg can expect to receive $4,810, while a business in Mississauga with 50 employees will receive $20,050. Medium-sized businesses in Calgary with 200 employees will receive $118,200 in rebates.

These rebates specifically target smaller companies with lower emissions that fall outside the industrial carbon pricing system. These businesses pay the same carbon price as individuals on items such as natural gas for heating and gasoline for fleet vehicles.

On a separate note, Finance Minister Chrystia Freeland urged opposition parties to collaborate with the government to pass legislation for a GST/HST holiday on essential goods, scheduled to begin on Dec. 14 and run until Feb. 15, 2025. Prime Minister Justin Trudeau also announced plans to provide $250 cheques in the spring of 2025 for working Canadians who earned $150,000 or less last year.

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Despite these measures, the federal government is facing a substantial deficit. Parliamentary Budget Officer Yves Giroux estimated a $46.8 billion deficit for the 2023-24 fiscal year, with the final figures expected to be confirmed in the upcoming annual public accounts report.

Freeland had previously committed to keeping the deficit within this limit, as outlined in the spring budget. This fiscal constraint was implemented to address concerns that excessive government spending could lead to inflation and undermine the Bank of Canada’s efforts to control it.

When questioned about the government’s adherence to its fiscal guardrail and the release of public accounts, Freeland redirected the conversation to the Conservatives, accusing them of obstructing routine Parliamentary proceedings through filibustering.

She emphasized the importance of allowing Parliament to function effectively and assured that a fall economic statement and public accounts would be made available in due course.

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