Rebate among initiatives to assist businesses

THUNDER BAY, ON. – Small and medium-sized businesses will benefit from three federal initiatives aimed at helping businesses thrive, a government minister said.

The first initiative is the payment amounts for the new Canada Carbon Rebate for Small Businesses, which will deliver over $2.5 billion to about 600,000 Canadian businesses before the end of this year.

Patty Hajdu, Minister of Indigenous Services Canada, said this refundable tax credit will return a portion of the fuel charge proceeds from 2019-20 through 2023-24 to small businesses.

"One big benefit is it's a rebate right around the time of Christmas and a lot of small businesses are private families," said Hajdu, who is also MP for Thunder Bay-Superior North and minister responsible for the Federal Economic Development Agency for Northern Ontario (FedNor).

"This is extra money in their pocket that will be useful for everything that they need. It's also a way to acknowledge the contribution of small businesses to fighting climate change, and it's a significant amount of money."

In Ontario, the Canada Carbon Rebate for Small Businesses will deliver $401 per employee.

Depending on the size of the business, people could receive a cheque from $4,000 up to $200,000, Hajdu said.

She noted that businesses have to purchase equipment or supplies, and oftentimes there's a price on pollution in those purchases.

"It acknowledges that businesses are also part of the solution to reducing our emissions and transforming the way we power ourselves," Hajdu said.

She said it was a "challenging process" to figure out how to do this fairly and equitably across the board.

"But we've got the process in place," she said. "As long as a business has filed their income tax this year, by July 15, they will be eligible for the rebate. And most small businesses are extremely thorough in taking care of their tax situation. I anticipate that there will be a lot of happy small businesses this Christmas."

The second initiative is the revised Code of Conduct for the Payment Card Industry in Canada aimed at protecting businesses that accept credit card and debit card payments from customers.

Beginning on Oct. 30, the revised code will help businesses compare prices and offers from different payment processors, and shorten the complaint handling response time by nearly 80 per cent to just 20 business days.

Hajdu said oftentimes it's hard for small businesses to obtain the details and the information they need to choose which transaction processing company they want to select.

"This code of conduct, which all processing companies have signed on to, will mean that they have to provide that information so businesses can make more informed choices."

Reduced credit card transaction fees for small businesses is the third initiative that will take effect on Oct. 19. Most small- and medium-sized businesses that accept credit cards will receive lower rates and see interchange fees reduced by up to 27 per cent.

"The federal government negotiated a reduction of fees with the major banks," Hajdu said, adding many people don't realize that when customers pay by credit card, the credit card processing company will hold back a percentage of your sales.

"There should be a relief in sight for small businesses that are, that are having this astronomical expense," she said. "But secondly, the code of conduct commits all the transaction processing companies to be transparent for what those fees are."

The Code of Conduct for the Payment Card Industry in Canada was first released in 2010 and was last updated in 2015.

Sandi Krasowski is a Local Journalism Initiative reporter with The Chronicle-Journal in Thunder Bay, Ontario.