CFIB Expresses Disappointment Over HST Hike
FREDERICTON – The Canadian Federation of Independent Business has expressed disappointment over the 2016-17 provincial budget released Tuesday, saying the HST hike of two per cent will have a negative impact on the economy.
The organization said small business owners recognize the urgency in improving the province’s financial situation but believe more spending cuts should have been put into effect rather than the HST increase.
“There were some efforts to get a better control on spending, but clearly not enough since the HST had to go up, “ CFIB director of provincial affairs Denis Robichaud said in a release. “Our members believe that in a fragile economy, increasing consumption taxes is simply a bad idea … Many small business owners tell us that the insufficient domestic demand is one of the main limitations on sales or production growth for their business. Raising the HST certainly won’t help.”
With the HST hike now confirmed, CFIB is asking the government to measure the impact the increase will have on the economy and on small and medium enterprises. Robichaud said if a review demonstrates the HST increase will have a significant negative impact, they will be asking that small and medium sized businesses be compensated.
CFIB also expressed concerns over the absence of a reduction in the small business corporate tax rate, which was promised in the 2014 provincial election.
“This government has promised to reduce the small business corporate tax rate to 2.5 per cent. I was concerned that there was no mention of a second reduction in the budget. But bother the premier and the finance minister assured me that this will be announced shortly,” Robichaud said.
Robichaud hopes that going forward the provincial government will focus on economic growth.
“This budget didn’t really address economic growth, job creation and helping businesses access qualified labour,” Robichaud said. “The government needs to create a positive environment where entrepreneurs will feel confident about launching or expanding their business. We believe that any initiative aimed at supporting economic development needs to include small and medium-sized businesses.”