CFIB survey: Tax burden tops small business concerns in Canada as retailers cite costs, regulation and crime

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A new Members Opinion Survey by the Canadian Federation of Independent Business (CFIB), which looks at the top policy concerns of small and medium‑sized business owners across Canada, says retailers face a combination of cost, compliance, and public safety issues. 

“Tax burden (72%) leads, followed by government debt and deficit (49%), regulation (48%). Trade challenges and labour shortages (each at 47%) complete the picture. Crime and safety (39%) stands out as a more prominent concern than in most other sectors,” said the national organization.

“Hospitality businesses face heavy fiscal and regulatory burdens. Tax burden (72%) is the top issue, followed by labour shortages (53%) and government regulation (50%).”

Overall for all sectors, the CFIB said the total tax burden has been the top concern for over 25 years. After peaking at 86% in 2000, the share of entrepreneurs flagging it as an important concern dropped to 66% after the pandemic as inflation took centre stage. It’s now climbing again toward its long-term average of 78%.

“The shortage of qualified labour is a very important challenge. Only 30% of business owners indicated it in 1998, but that share peaked at over 60% in recent years. While trending down since 2024, it’s still above its historical average of 47%,” said the report.

Photo: www.kaboompics.com
Photo: www.kaboompics.com

“Government regulation and paper burden seriously concerned 56% of owners in the late 1990s and it climbed to 72% by 2014. To push for change, CFIB launched Red Tape Awareness Week. Today, concern is back near 1990s levels—progress made, but the issue remains.

“Other issues such as employment insurance, workers’ compensation, government debt and provincial labour laws affect fewer businesses, but they are still significant concerns. New worries like trade challenges and crime and safety have emerged and were added to the survey in recent years.”

The CFIB said its grassroots survey has been a cornerstone of its research since 1975, tracking the top policy concerns of small and medium‑sized business owners across Canada. District Managers collect responses through in‑person interviews during annual member renewals, generating about 7,500 responses per quarter. 

The survey asks one simple ‘select all that apply’ question: “Which of the following issues are the most important to your business?”. Results are compiled daily and reported quarterly since 2025. 

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Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

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