2019 is already proving to be a challenge for local businesses in the province of British Columbia according to the Canadian Federation of Independent Business (CFIB).
Following February, the provincial rating sits at 55.4 points, placing it below the Canadian average (59) by 3.6 points. From this point last year, the rating has dipped 14.1 points.
According to Muriel Protzer, a policy analyst with CFIB, the dip is a result of many small businesses feeling the effects of last year’s budget.
While there weren’t any new taxes introduced in BC’s 2019 Budget, which was released last month, Protzer says the number of new policies that are coming into place this year.
“What we’re hearing from some of our members here at CFIB is the Employee Health Tax. Local businesses, including those in the rural areas, will be feeling the effects of that in June once they will be responsible for paying that tax,” Protzer told My PG Now.
As the summer months draw closer, businesses will become required to start paying taxes such as the EHT. Protzer says it will be essential that businesses have the resources to administer, as well as pay taxes that are required of them.
“We have heard from our members that there is little to no information that they have received as to how they can go about doing that,” says Protzer. “First and foremost, education is primary.”
Along with the EHT, small businesses will feel the pinch with the increasing of the Carbon Tax on April 1.
The minimum wage on BC will also be going up this year, increasing to $13.85 from the current $12.65. Particularly for small businesses, an increase in wages of their employees may lead to changes operationally.
Despite the increases in some finances for businesses, there are a few areas that may help business owners as well.
Businesses will feel ease on the Provincial Sales Tax come April 1 when they will no longer have to pay the tax on their hydro bill.
“Local businesses will have to be very aware of how their budgeting and financing for the year,” says Protzer.
The most optimistic small business owners in the country are located in Nova Scotia (66.3) and Ontario (64.8).