Statement on Budget 2022

Apr 8, 2022

The Guelph Chamber of Commerce released the following statement in response the 2022 Federal Budget that was tabled on April 7, 2022.

“Canadian businesses have experienced an unprecedented two years, characterized by a multi-wave pandemic, supply chain disruptions, labour shortages, geopolitical turmoil, and inflation that has reached a 30-year high. As Canadians continue to feel the effects of the pandemic on their pocketbooks, it has never been more important for the federal government to focus on economic growth and provide Canadian businesses the right conditions to make us a strong, resilient, and competitive nation.

We cannot borrow, cut, or inflate our way to prosperity. Federal spending needs to generate genuine economic returns which requires targeted investment and fiscal responsibility.

We welcome the following measures announced in the budget:

  • The gradual phase out of the small business tax rate when taxable capital reaches $50 million instead of $15 million.
  • Investments in the critical minerals industry to support the full development of supply chains, from extraction through to processing and recycling.
  • Various measures to support the net-zero transition, including the introduction of a tax credit for carbon capture, utilization and storage, incentives for Zero Emissions Vehicles, and investment tax credits for net-zero technologies.
  • Funding towards a trusted employer program for Temporary Foreign Workers that will address labour shortages.

Some of our concerns include:

  • The absence of debt relief for businesses that accessed COVID-19 government support programs.
  • A lack of focus on regulatory reform and inter-provincial trade.
  • Only a partial review of the tax system rather than a comprehensive review, particularly given the implementation of additional measures on a sector basis for financial institutions and digital services.

Further partnership with business and the private sector will be crucial to guarantee Canada’s rapid post-pandemic recovery and help shape resilient communities. It has never been more important for the government to view Canadian businesses as a partner to bridge the gap between Canada’s potential and performance.”