The Canadian Federation of Independent Business (CFIB) is urging the Alberta government to complement its newly announced Alberta Energy Rebate with longer-term measures aimed at reducing costs for small businesses, including cutting the province’s small business tax rate.
The business advocacy group said the government’s decision to provide direct payments to most adult Albertans may offer short-term financial relief but does not address the cost pressures affecting small businesses.
The Alberta Energy Rebate will provide direct payments tied to high energy revenues, replacing the province’s previous fuel tax relief mechanism. According to the CFIB, most adult Albertans will receive the payments under the new program.
The CFIB said the rebate may help households in the short term but argued it does little to address broader affordability challenges facing businesses and consumers.
“Small businesses understand how difficult rising costs have been for Albertans and appreciate the government’s intent to provide cash relief,” said Keyli Loeppky, Senior Director of Alberta & Interprovincial Affairs at CFIB. “However, direct payments to individuals alone won’t address the underlying challenges driving affordability concerns—especially for small firms that are being squeezed on all sides.”
The organization said a $100 rebate would represent only a small portion of the higher monthly costs many business owners continue to face.
The CFIB said small businesses continue to contend with rising expenses, including energy, insurance, operating costs and property taxes, adding that one-time payments are unlikely to change those longer-term financial pressures.
“Small firms are dealing with rising costs in energy, insurance, operating costs, and property taxes,” Loeppky added. “A one-time $100 rebate is simply a drop in the bucket compared to the sustained cost increases businesses are absorbing every month. Without targeted relief, these pressures will continue to limit their ability to invest, grow, and keep prices down for consumers.”
The organization also pointed to concerns raised by economists about broad-based cash payments, saying such measures risk sustaining inflation by increasing demand without addressing underlying cost drivers in the economy.
CFIB is calling on the Alberta government to adopt measures that directly reduce the cost of doing business. Among its recommendations are lowering the province’s small business tax rate and increasing the income threshold at which the rate applies.
The organization said reducing Alberta’s small business tax rate to zero would have less than a one per cent impact on provincial government revenue, estimating the effect at 0.42 per cent.
The CFIB said Alberta’s fiscal position provides an opportunity to implement longer-term tax measures that it believes would better support small businesses than one-time rebate payments.
“Short-term cash might feel good today, but it won’t keep a business open tomorrow,” concluded Loeppky. “Alberta has the fiscal room to do more than short-term fixes. Cutting the small business tax rate is the most direct way to support jobs, investment, and long-term affordability.”
The CFIB represents 103,000 small and medium-sized businesses across Canada, including 11,000 in Alberta.
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