Small business owners were looking to the 2025 budget to provide critical cost relief and to improve Canada\u2019s tax competitiveness to jump start our economy. Instead, most of the budget\u2019s economic measures were reannouncements from 2024.<\/p>\n \u201cToday was a missed opportunity to provide meaningful tax relief to Canada\u2019s employers. The government could have taken the reins by reducing the small business corporate tax rate, freeing up millions of dollars for investment in employees, technology and operations,\u201d said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB).<\/p>\n \u201cGovernment finances are a mess, but the budget just slows the growth in program spending with overall deficits above $50 billion per year as far as the eye can see,\u201d Kelly added. \u201cSmall firms have learned the hard way that today\u2019s deficits are tomorrow\u2019s taxes.\u201d<\/p>\n Budget Concerns<\/strong> \u2022 \u00a0 \u00a0The $51-billion Building Communities Fund is to focus on projects using unionized labour, which would effectively exclude 90% of small businesses. Positive Measures for Small Business Owners<\/strong> \u2022 \u00a0 \u00a0Government is reintroducing the Accelerated Capital Cost Allowance on most capital assets and immediate expensing provisions. The budget also extends immediate expensing to manufacturing and processing buildings. This is a sound way to improve productivity among many Canadian SMEs. \u201cSmall business confidence in the economy remains incredibly low given the massive uncertainty over tariffs from the U.S., China and now India,\u201d said CFIB\u2019s executive vice-president of advocacy Corinne Pohlmann. \u201cWhile progress was made on a few fronts, there were very few new measures that will offer immediate help for small business owners trying to keep the lights on.\u201d<\/p>\n<\/div>\n![\"-\"](\"https:\/\/www.canadiancontractor.ca\/wp-content\/uploads\/2025\/11\/AdobeStock_200969371-630x418.jpeg\")
Here\u2019s the statement from the Canadian Federation of Independent Businesses on the 2025 federal budget:<\/em><\/p>\n
\u201cIn addition to the lack of tax relief and giant fiscal deficits, many of the measures meant to stimulate the economy or insulate Canadians from the impact of tariffs appear to exclude small firms,\u201d Kelly said.<\/p>\n
\u2022 \u00a0 \u00a0The $1-billion Regional Tariff Response Initiative delivered by Regional Development Agencies misses the mark and excludes over half of small businesses that will be deemed too small or in the wrong sector.
\u2022 \u00a0 \u00a0The Canadian Entrepreneurs\u2019 Incentive announced in budget 2024, repeated in the Fall Economic Statement and confirmed as recently as January 2025, has now been officially cancelled.<\/p>\n
\u201cThere were a few wins for small business owners in today\u2019s budget, albeit many were reannouncements from 2024,\u201d Kelly said.<\/p>\n
\u2022 \u00a0 \u00a0Legislation to increase the Lifetime Capital Gains Exemption to $1.25 million has been confirmed. This is an important measure to help with small business succession plans.
\u2022 \u00a0 \u00a0Legislation to remove income taxes from the Canada Carbon Rebate (CCR) for Small Business and to extend the deadline will be introduced. CFIB has also confirmed with government sources that the $623 million in CCR payments for 2024\/25 will be distributed before the end of the year.<\/p>\n