Weekly Digest – 14 February 2025
Canada’s Tax ‘Holiday’ Wraps Up with Minimal Impact on Small Businesses: CFIB
Canada’s temporary GST “holiday” is ending on Saturday, but most small businesses saw little to no impact on sales, according to a survey by the Canadian Federation of Independent Business (CFIB). Only five per cent of small businesses reported increased sales, with retail seeing minimal benefit and hospitality experiencing a modest 15 per cent rise. Moneris data showed overall spending declined by four per cent, with Ontario experiencing an eight per cent drop despite also removing its HST. Businesses faced administrative challenges, including reprogramming point-of-sale systems. CFIB president Dan Kelly criticized the initiative as a failure and called for a $1,000 credit to offset costs. While small businesses remain skeptical, Restaurants Canada supports making the tax break permanent, citing increased dining activity. However, the federal government has indicated the measure was temporary and is unlikely to continue.
.https://globalnews.ca/news/11012608/canada-tax-holiday-small-business-impact/
CRA to Tax $2.5 Billion Small Business Carbon Rebate Despite Finance Department’s Decision
he Canada Revenue Agency (CRA) is set to tax the $2.5 billion small business carbon tax rebate, despite the Finance Minister’s previous assurance that it would be tax-free. In November 2024, after CFIB protested an earlier CRA decision, Finance Minister Chrystia Freeland publicly stated the rebate would not be taxed, and the Department of Finance’s website still lists it as tax-free. However, CRA has confirmed in writing that the rebate qualifies as taxable government assistance.
These rebates, averaging over $4,000 each, were distributed to 600,000 small businesses in December. Meanwhile, carbon tax rebates for Canadian families remain tax-free. CFIB president Dan Kelly criticized the move, stating small businesses have faced uncertainty for years. Since only new legislation can override CRA’s decision, CFIB is urging Parliament to reconvene to pass laws ensuring tax-free rebates, halt the planned carbon tax increase, and restore the rebate formula to benefit more businesses.
Canada Takes Action to Reduce Emissions at British Columbia Ports
The Government of Canada is investing in green shipping initiatives to decarbonize the marine sector along British Columbia’s coastline. Minister of Transport Anita Anand announced up to $35.5 million in funding for three projects under the Green Shipping Corridor Program. This investment will enhance clean energy use at ports, support shore power technology to reduce emissions from idling ships, and promote low-emission vessels to minimize environmental impact.
The initiative is part of Canada’s broader strategy to transition to low-carbon and net-zero emission fuels in the marine industry. These investments not only protect the environment but also boost British Columbia’s marine and cruise industries, creating jobs and improving air and water quality. Transport Canada is working with shipping partners, coastal and Indigenous communities, and environmental groups to ensure a sustainable transportation future. This funding reinforces the government’s commitment to a cleaner, greener economy.
LifeLabs Workers in B.C. Announce 72-Hour Strike Notice
Unionized LifeLabs workers in British Columbia have issued a 72-hour strike notice after months of unsuccessful negotiations. The B.C. General Employees Union (BCGEU) claims the company refuses to raise wages in line with the cost of living or address chronic understaffing. Workers currently earn 4-16% less than others in the industry, according to BCGEU president Paul Finch.
Now owned by U.S.-based Quest Diagnostics, LifeLabs faces criticism for adopting a for-profit healthcare model. Despite the strike notice, LifeLabs assures continuity of care, as it is a designated essential service. However, some locations may experience temporary closures.
LifeLabs workers have been without a contract since April 2023 and voted 98% in favor of strike action in November. The company states it remains committed to reaching a negotiated deal. Customers are advised to check the LifeLabs website for service updates as negotiations continue.
.https://globalnews.ca/news/11018223/lifelabs-strike-notice-bc/
B.C. Company Scraps Plans for Oil Refinery Project Aimed at Fuel Exports to Asia
Pacific Future Energy, a B.C.-based company, has canceled its proposal to build a West Coast refinery for exporting refined petroleum products to Asia. The project, which aimed to transport Alberta’s oil sands bitumen to northwestern B.C. for refining, was intended to produce diesel, gasoline, and jet fuel for export.
The company announced its decision in December 2024, after months of uncertainty, officially terminating its application with the Impact Assessment Agency of Canada. The environmental review, which began in 2016, was halted by federal Environment Minister Steven Guilbeault.
The refinery project had garnered support from prominent figures, but faced significant opposition from environmental groups and Indigenous communities. The cancellation follows a broader decline in support for large oil export projects in the region, including the failed Northern Gateway pipeline proposal. If the company chooses to revive the project, it will need to submit a new application under updated environmental assessment regulations.