HALIFAX: As small businesses kick off 2024, they are passing along some New Year’s resolutions for their provincial governments.
Duncan Robertson, Senior Policy Analyst at the CFIB, said small businesses are looking to make the most of the new year.
“Hopefully, provincial governments in Atlantic Canada will take positive New Year’s resolutions,” said Robertson.
“Addressing the cost of doing business should be on top of their list.”
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The year 2023 was a costly year for small businesses. According to a recent survey by CFIB, the cost of doing business has impacted over eight in 10 small businesses in Atlantic Canada.
Business owners are reporting that taxes, fuel, wages, occupancy, insurance and borrowing costs are causing difficulties for their business.
CFIB’s latest Business Barometer shows these indicators were all above their historical averages in December.
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A new year also means new costs for small businesses.
On January 1, employers saw their payroll costs increase due to Employment Insurance (EI) hikes and the addition of a second earnings limit to Canada Pension Plan (CPP).
These latest hikes increased payroll taxes for employers by up to $366 per employee, and up to $348 for workers.
This year, total employer contributions for CPP and EI alone could amount to $5,524 per employee.
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As the new year begins, CFIB is asking Atlantic Canada governments to consider the realities facing small businesses.
One way the provincial governments can help small businesses keep up with the rising cost of doing business is by providing direct tax relief by lowering the small business tax rate and expanding the small business tax threshold.
Over half (60%) of small businesses say they would use the tax relief to pay down debt and/or improve employees’ wages and benefits.
“With increased costs and soft domestic demand putting pressure on Atlantic Canada’s small businesses, it is no wonder their optimism is low,” said Robertson.
