Canadian business groups say tax reform, reduced red tape and workforce measures should be priorities in the federal budget.
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Canadian businesses have submitted pre-budget wish lists to Ottawa ahead of Thursday’s federal budget, highlighting seven themes they want reflected in federal policy.
Tax reform and investment competitiveness topped the list, with the Canadian Federation of Independent Business calling for a small-business tax rate of six per cent, down from nine per cent, and for raising the small-business income threshold to $700,000 from $500,000.
The Business Council of Canada said competitive corporate, personal and capital gains tax policies attract investment, while the Canadian Chamber of Commerce urged changes to Canada’s implementation of the global minimum tax and rules limiting interest deductions on business loans.
The chamber’s vice-president of government relations, David Pierce, said competitiveness should be the budget’s focus.
Businesses also called for faster, more predictable regulatory approvals. Canadian Manufacturers & Exporters’ Dennis Darby said the less risk companies perceive for an investment, the more likely they are to put money into projects.
Business groups said Ottawa should convert economic ambitions into outcomes such as investment, construction and jobs, rather than relying on announcements.
On trade, tariff relief and protection for domestic industries were cited as major concerns, particularly given the ongoing trade dispute with the United States.
Pierce said uncertainty is affecting businesses’ interest in deploying capital and spending money in Canada, while the Canadian Steel Producers Association called for measures to protect domestic steelmakers from unfairly traded imports.
Several submissions pointed to skilled labour shortages and workforce development, including calls to prioritize training for Canadians already in the workforce and to reduce costs for small employers.
The Canadian Home Builders’ Association urged extending the federal GST rebate on new homes to all buyers rather than just first-time purchasers, and it asked Ottawa to expand agreements with provinces to lower development charges and reduce construction costs.
Finally, business groups argued for removing internal trade barriers and improving labour mobility, and for stronger “Buy Canadian” policies to support demand for domestically produced steel on major infrastructure projects.
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