adplus-dvertising
Connect with us

Business

After 5 years, Budget 2024 lays out promised small business carbon rebate – Global News

Published

 on


The federal government plans to “urgently return” money collected through the carbon price’s fuel charge to small businesses, making good on a commitment from 2019 to return that money.

Billed as the Canada Carbon Rebate for Small Businesses, the plan involves more than $2.5 billion that has been collected through the federal fuel charge in provinces where Ottawa’s carbon price applies over the last five years.

This includes Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.

While the plan is described in its name as a “rebate,” the wording in the federal budget describes it as a “refundable tax credit” that will be directly returned to eligible businesses through direct payments from the Canada Revenue Agency, “separately from CRA tax refunds.”

An estimated 600,000 businesses with 499 or fewer employees will be eligible.

Given the cost of living focus in Budget 2024, TD Bank senior economist Francis Fong says he has his doubts about whether this extra money flowing back to small businesses will result in significantly lower prices.

“I think it’s going to be difficult to separate the impact of higher carbon taxes as they rise year after year after year with this kind of broader cost of living affordability crisis that we’re currently facing,” Fong told Global News.

“So will this go a long way in helping to address affordability challenges? I suspect the answer is no, but it’ll go some way in mitigating that.”

As outlined in the budget document, to receive the refund businesses will have to file their 2023-24 taxes by July 15, 2024.

The Canadian Federation of Independent Business has long called for the money collected in the fuel charge to be given back to small businesses.

However, the CFIB has previously called on the government to reverse the rate of the fuel charge set aside for businesses from nine per cent to five per cent. This follows a commitment to double the rural rebate top-up, which still needs to be passed by the House of Commons.


Click to play video: 'Small businesses owed $300 million in stalled carbon tax rebates, CFIB says'

1:42
Small businesses owed $300 million in stalled carbon tax rebates, CFIB says


This refund structure is already built into the federal carbon pricing legislation. The overwhelming majority of refunds from the money collected through carbon pricing, roughly 90 per cent, goes to households, with the updated structure for the new rebate laying out that five per cent will go to small and medium-sized businesses, and the remainder will be returned to Indigenous communities.

Environment and Climate Change Canada is still working with Indigenous communities on how best to manage the return of those portions of the fuel charge proceeds.


Financial news and insights
delivered to your email every Saturday.

The inclusion of the small business rebate in the federal budget follows a heated political debate on the most recent carbon price increase from $65 per tonne to $80 per tonne. The opposition Conservatives and seven premiers all called for the increase to be at least paused citing cost of living concerns.

In response, Prime Minister Justin Trudeau referenced a March 2023 Parliamentary Budget Officer report saying eight out of 10 Canadians receive more than they pay through the recently renamed Canada Carbon Rebate, which is the portion that goes to households.

As part of the budget, a new amendment is being proposed to require banks to follow government naming conventions on direct deposits like the Canada Carbon Rebate. That would mean banks need to show the deposits arriving into consumers’ bank accounts under that name.

What about other tax credits?

 As part of the suite of climate change-related measures in the budget, the government plans to implement the previously announced Clean Electricity Tax Credit, to the tune of $7.2 billion over the first five years of the program.

Between 2029-30 and 2034-35, the government intends to increase the value of the tax credit to $25 billion.

The government’s goal is for Canada to have a net-zero electricity gird by 2035.

In an effort to spur investment in low emission electricity, this document sets out to establish a 15 per cent tax credit for private companies to build new or expand generation in wind, solar, hydroelectric, geothermal, waste biomass and nuclear power.


Click to play video: 'Manitoba focused on hitting net zero while delivering affordability: premier'

1:29
Manitoba focused on hitting net zero while delivering affordability: premier


The tax credit is also open to natural gas, as long as the project incorporates carbon capture and storage.

Some provinces, like Saskatchewan, have Crown corporations that provide electricity generations. As outlined in the budget, these provinces are eligible to apply for the tax credit as long as they publicly commit to achieving net-zero electricity by 2035 and pass any savings on to ratepayers by lowering electricity bills. The deadline for this is March 31, 2025.

This could add to the political fight on climate policy between Ottawa and Saskatchewan, as that province’s stated goal on achieving net-zero electricity is 2050, 15 years after the federal target.

What’s new with home heating affordability plans?

 Home heating is another central driver of fuel charge revenue, with $903.5 million targeted at trying to reduce costs but the bulk of this funding will not be in place until the next fiscal year.

The government plans on establishing an $800-million program to provide direct funding for low-to-middle income households on the installation of energy-efficient retrofits on their heating systems. This fund is set to rollout over five years, starting in 2025-26.

An additional $73.5 million is set aside to modernize various energy efficiency programs for apartment building owners, and $30 million to develop a standardized approach to home energy labelling to help home buyers better understand how efficient a property is.


Click to play video: 'Saskatchewan government won’t remit carbon levy to Ottawa'

1:56
Saskatchewan government won’t remit carbon levy to Ottawa


Home heating became a key driver in the renewed opposition to the federal carbon price, when Trudeau announced a three-year pause on the carbon price for home heating oil. The pause applies nationally, but critics argue it disproportionately benefits Atlantic Canada.

This led to Saskatchewan ending its collection and remittance of the carbon price on home heating, which Statistics Canada said reduced inflation in that province.

To go along with the heating oil pause, Trudeau also pledged to work with the provinces to help buy heat pumps for lower income households that use heating oil, as a means of reducing the emission intensity and fuel charge after the pause concludes.

More on Money

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

Published

 on

 

Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

Companies in this story: (TSX:T)

Source link

Continue Reading

Business

TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

Published

 on

 

CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

Published

 on

 

BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending