Federal budget 2025 must deliver unfinished tax promises and provide certainty for small businesses and the Canadian economy

TORONTO, Oct. 28, 2025 /CNW/ - The Canadian Federation of Independent Business (CFIB) is calling on the federal government to use the upcoming budget to keep its outstanding promises and restore small business confidence.

"Small firms are still waiting on Ottawa to deliver outstanding carbon tax rebates from 2024 and key commitments on capital gains," said Dan Kelly, CFIB president. "'Uncertainty' has been the word of the year so far for entrepreneurs. It's time for the government to focus on the policies they can control and provide some stability as we look ahead to 2026."

CFIB's top priorities for the 2025 budget include:

• Carbon tax: Confirm the tax-free status of the $2.5-billion small business rebate issued in December 2024 and immediately return the outstanding $623 million in 2024-25 rebates. Deliver on the promise to allow any firms that filed their 2024 tax returns before December 31, 2024, to qualify for the original and upcoming rebates.
• Capital gains: Pass the promised increase to the Lifetime Capital Gains Exemption threshold to $1.25-million, retroactive to June 25, 2024, and proceed with the Canadian Entrepreneurs' Incentive program committed to earlier this year.
• Tariffs: CFIB sent a letter to Ministers Champagne and Joly raising concerns about the federal government's failure to provide adequate help to small firms affected by tariffs. The recently announced Regional Tariff Response Initiative, meant to assist small businesses, varies greatly by region and tends to exclude most small businesses. CFIB is urging Ottawa to implement a rebate program for tariff-impacted SMEs and ensure any rebates and refunds are tax-free.
• Small business tax rate: Reduce the federal small business tax rate, increase the federal small business exemption threshold from $500,000 to $700,000 and index the threshold to inflation annually going forward.
• Public finance: Implement a clear path to balancing the overall government budget with legislated spending limits outside of a global crisis.

"Building 'one Canadian economy' starts with small business," said Corinne Pohlmann, CFIB executive vice-president of advocacy. "You can't build a stronger Canada without empowering the entrepreneurs who drive it. After yet another challenging year of labour disruption, trade uncertainty and rising costs, small business policies need to be front and centre in the budget."

CFIB will be available for comment prior to and after the release of the federal budget.

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.

SOURCE Canadian Federation of Independent Business

For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, [email protected]