B.C. businesses will shoulder $6.5B due to government taxes, programs: report
A new report released by the Greater Vancouver Board of Trade on Wednesday suggests B.C. businesses will shoulder $6.5 billion in additional costs due to government taxes and other programs.
The report, titled “Counting the Costs,” shows that between 2022 and 2024, health taxes, corporate taxes, health taxes, paid sick leave and the carbon tax will add on billions in direct costs. It also highlights the impact of a rise in minimum wage, the top personal tax rate and a new statutory holiday.
At The Ruby on Johnson in Victoria, business is OK. Chris Jones, the restaurant's owner, worries about increasing costs.
"Rising cost of goods, rising cost of labour, (there are) a lot of the things the government has implemented but we are paying for," Jones explained.
In a statement, the organization said growth, entrepreneurship and investment is being impeded as a result.
The breakdown of costs between 2022 and 2024 is as follows:
- Net health taxes: $4,001,000,000
- Corporate income tax: $1,607,000,000
- Paid sick leave: $1,200,000,000
- Business share of carbon tax: $515,000,000
- Savings (SME tax rate & PST on non-residential electricity: $873,000,000
- Total additional costs: $6,450,000,000
Jones called the number surprising.
"I think $6.5 billion is a scary number because we're already in more or less a break-even environment, a lot of small businesses are right now," he said.
For Bridgitte Anderson, the president and CEO of the GVBOT, it is a call to action.
"Now is the time to take action to ensure we're supporting the growth of businesses in our province." she told CTV News.
According to the government, in 2021, 98 per cent of all B.C. businesses were small enterprises.
In the face of what GVBOT calls a challenging environment, it is making the following recommendations.
- Allow small and medium businesses to earn more, before they have to pay the Employer Health Tax
- Introduce PST exemptions for things like software and equipment
- Recycle carbon-tax revenues into local tech and emissions-reduction efforts
- Actively seek opportunities to reduce costs for small and medium enterprises
"It's like death by 1,000 cuts and businesses are saying we simply can't afford to continue in this way," added Anderson.
Both Jones and the Greater Vancouver Board of Trade say they'd like to see targeted measures for small and medium businesses. The premier seems to agree, but is talking about even more specific measures.
At an unrelated event, David Eby was asked about what measures may be on the way.
"We are working with, for example, with business improvement associations to support those businesses in the downtown core that are seeing decreased foot traffic. They're seeing increased issues around mental health and addiction that we're tackling as the government, but we know they need extra support," added Eby.
Jones said he'd like supports a bit broader and focused on reducing costs.
"Everyone is nervous. I do think good, sharp operators will survive, but when you look around our cities, you're seeing a lot of 'for lease' signs now," said Jones.
The report comes as several economists report an economic downturn in the country is likely.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6976926.1721883767!/httpImage/image.png_gen/derivatives/landscape_800/image.png)
LIVE UPDATES Critical infrastructure 'successfully protected': Jasper park officials
Jasper National Park officials in an update said all critical infrastructure in the townsite has been 'successfully protected, including the hospital, emergency services building, both elementary and junior/senior schools, activity centre and wastewater treatment plant.'
Canadian Olympic Committee removes women's soccer team's head coach over drone scandal
The Canadian Olympic Committee has removed women's national soccer team head coach Bev Priestman over a drone scandal, according to a press release from the organization.
Yukon woman narrowly escapes bear attack, credits hair clip
A woman in Yukon believes her hair clip helped save her during a bear attack.
Prince William's 2023 salary revealed in new report
Newly released financial reports show that William, the Prince of Wales, drew a salary of $42.1 million last fiscal year, his first since inheriting the vast and lucrative Duchy of Cornwall.
'I was just shocked': Jasper lodge owner on seeing property destroyed by wildfire
On Wednesday night, the owner of Maligne Lodge in Jasper, Alta., was shocked to receive a photo of her business engulfed in flames.
Mary-Ellen Turpel-Lafond likely has Indigenous DNA: report
The Law Society of British Columbia says a DNA test shows a former judge and Order of Canada recipient accused of falsely claiming to be Cree "most likely" has Indigenous heritage.
U.S. authorities have arrested 'El Mayo' Zambada, a historic leader of Mexico's Sinaloa cartel
Ismael 'El Mayo' Zambada, a historic leader of Mexico's Sinaloa cartel, and Joaquin Guzman Lopez, a son of another infamous cartel leader, were arrested by U.S. authorities in Texas on Thursday, the U.S. Justice Department said.
Harris pushes Netanyahu to ease suffering in Gaza: 'I will not be silent'
U.S. Vice President Kamala Harris pressured Israeli Prime Minister Benjamin Netanyahu on Thursday to help reach a Gaza ceasefire deal that would ease the suffering of Palestinian civilians, striking a tougher tone than President Joe Biden.
'She led it the whole way': 18-year-old B.C. woman leads hikers to safety in Jasper National Park
As fire threatened people in Jasper National Park, Colleen Knull sprung into action.