OTTAWA, Nov. 21, 2018 /CNW/ - Today's federal fall economic update presents some good measures for small business, says the Canadian Federation of Independent Business (CFIB). In particular, small business will be pleased to see action on incentivizing investment and addressing red tape.
"The last couple of years have brought a number of government announcements that have not been easy for small firms to absorb, so today's news should bring them some important relief," said CFIB president, Dan Kelly.
Government announced it will:
- Allow businesses to write off the full cost of machinery and equipment used for the manufacturing and processing of goods;
- Allow businesses to immediately write off the full cost of clean energy equipment; and,
- Allow businesses of all sizes and sectors to write off a larger share of the cost of new assets in the year it was made (Accelerated Investment Incentive).
"We are pleased that the government has chosen to introduce these incentives as they will encourage new business investment and boost innovation while helping them to maintain their competitiveness with their American counterparts," added Kelly.
New measures to help reduce red tape
CFIB has long pushed for measures to reduce the regulatory burden on SMEs. Today the government made some progress by introducing a number of measures including an Annual Modernization Bill to remove outdated or redundant regulatory requirements as well as an External Advisory Committee on Regulatory Competitiveness.
"Red tape is a top issue of concern to small business and we are pleased with the steps taken today. CFIB hopes to continue to work closely with them on this file and encourages government to introduce a reduction target and produce a yearly comprehensive count of federal regulations to ensure that the commitment is met," continued Kelly.
Commitment to trade
CFIB strongly supports addressing the many barriers that small businesses face when crossing interprovincial and international borders. Today's announcement reinforces the federal government's commitment to work with provinces and territories to address interprovincial trade barriers in transportation, food, construction and alcohol. CFIB also welcomes the focus on export diversification and is ready and willing to work with government to continue to encourage more small firms to engage in trade.
Many ongoing concerns remain
Despite some of the good news in today's economic statement, small businesses are still worried about the growing federal tax burden due to seven consecutive years of CPP increases starting January 2019, new federal carbon taxes announced in several provinces and recent small business tax changes. There is also little progress on addressing the deficit with no plan on when it will be eliminated.
"We all know that today's deficits are tomorrow's taxes, so small business have good reasons to be worried about what's coming their way in the near future," concluded Kelly. "If we do not want to waste the potential benefits of what was announced today, it is important to continue to work on improving affordability and competitiveness for small and medium-sized firms."
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 110,000 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 further information: For media enquiries or interviews, please contact: Milena Stanoeva, CFIB, 647-464-2814, [email protected]