Charlottetown, PE (April 18, 2024) –  The Greater Charlottetown Area Chamber of Commerce welcomes the 2024-2025 Federal Budget announcement that carbon tax rebates will be introduced for small and medium-sized businesses.

The budget, which dropped Tuesday, has committed $2.5 billion in funds from the Carbon Tax Fuel Charge Proceeds for a rebate to small and medium businesses (499 or fewer employees). Proceeds will also be returned automatically each year going forward.

“In January, we conducted a poll on our membership regarding the impact of the carbon tax, with many respondents expressing the need for a carbon rebate for their business as a way to help lower operation costs,” said Bianca McGregor, CEO of the Chamber. “We urge the government to explore other measures it can also implement to reduce the cost of doing business.”

With increasing housing supply as another priority for the Chamber in 2024, we welcome the federal budget’s strategy to unlock 3.87 million new homes by 2031 and the $400-million top-up of the Housing Accelerator Fund to fast-track housing. The Chamber also welcomes plans to build more homes on public lands, Canada Post properties, and National Defence Lands, and converting underused federal offices into homes.

Overall, the Chamber welcomes other budget announcements such as:

  • The new Canadian Entrepreneurs’ Incentive to provide a tax break for entrepreneurs.
  • National Regulatory Alignment to break down the barriers to internal trade.
  • Foreign Credential Recognition for healthcare professionals and construction workers.
  • Investing in young entrepreneurs by allocating $60 million over five years to Futurpreneur Canada to help an estimated 6,250 businesses launch and expand.
  • Freezing tolls for the Confederation Bridge until the end of 2026 and the ferry until the end of 2025.

 

However, the Chamber remains concerned about high deficit spending, with the deficit projected to be almost $40 billion in 2024-2025. The Chamber continues to stress the need for a long-term strategy for reducing deficit spending and a plan to get back in balance in response to our slowing economy.

“We appreciate the positive initiatives outlined in the federal budget, however, we urge the government to address concerns regarding high deficit spending and financial management,” said McGregor. “It is imperative that we work collaboratively towards a sustainable and prosperous future.”

Budget 2024 also announces a tax increase to the capital gains inclusion rate on companies and individuals. The capital gains inclusion rate is increasing from one-half to two-thirds on capital gains above $250,000 on or after June 25, 2024. The Chamber is worried about the negative impacts this announcement could have on investment attraction for businesses.

The Greater Charlottetown Chamber will continue to work with chambers across the region and country to advocate for policies that foster a competitive business environment, stimulate economic growth, combat the ongoing labour shortage, increase housing, and other priorities of our membership.

 

 

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About The Chamber:

The Greater Charlottetown Area Chamber of Commerce connects business and community and is PEI’s largest business advocacy organization with more than 1,100 members. For more information on the Chamber, visit www.charlottetownchamber.com.

 

Media Contact:

Madeline Biso,

Policy Analyst & Media Relations Manager

mbiso@charlottetownchamber.com

(902) 628-2000 x 224