Positive Change for the Foodservice Industry: Carbon Tax Rebate mechanism announced for small and medium sized businesses
STATEMENT
Toronto, Oct. 01, 2024 (GLOBE NEWSWIRE) — Restaurants Canada is pleased to see the federal government’s announcement today on the implementation mechanism for carbon tax rebates for restaurant operations, an important step toward easing financial pressures in the foodservice industry.
The carbon tax rebates will provide foodservice operators with financial relief as they continue to navigate increasing expenses for food, insurance, rent, and utilities. The rebates, which vary by location and workforce size, will offer direct benefits to operators. For instance, a restaurant in Ontario with 10 employees could receive as much as $4,010.
In addition, starting October 19, 2024, smaller businesses with up to $300,000 in annual Visa sales and $175,000 in Mastercard sales will benefit from reduced interchange rates. However, most restaurants won’t benefit due to these low sales limits. We will continue advocating for all small and medium-sized businesses to secure broader reductions in interchange fees that can positively impact the foodservice sector.
“We thank the federal government for providing any measure that will support our industry – which is Canada’s 4th largest private sector employer, impacting the social and economic fabric of communities across the country” said Kelly Higginson, President and CEO, Restaurants Canada. “While the carbon tax rebate mechanism in these initiatives offers much-needed relief for small businesses, we continue to advocate for broader measures to address the needs of our entire industry,” said Higginson.
The restaurant industry generates $26 billion in taxes at the federal, provincial, and municipal levels. As businesses continue to adapt to evolving economic conditions, additional support through focused policies – such as reducing Employment Insurance premiums – would enable sustained growth and provide more financial security for operators and their employees.
CONTACT: Annette Goerner Restaurants Canada 613-818-6941 media@restaurantscanada.org
