OTTAWA — The Canadian Federation of Independent Businesses (CFIB) is urging B.C. to slow down its carbon tax policy, which kicked in at the start of this month.

Echoing concerns from the province’s truckers, CFIB Director of Affairs Brian Bonney said that additional fuel taxes are punitive for some small businesses and is asking the government not to increase the tax in the years ahead.

Currently, the province has implemented 2.4-cents-a-liter tax on gas and diesel. The rate jumps to nearly 8 cents a liter by 2012.
The CFIB’s recent Business Barometer survey, independent businesses were most likely to report rising energy costs as the factor that has worsened their business performance.

Its report for the first quarter of 2008 reported that small business confidence for the year ahead has remained at a lower level than in previous quarters. A full 71 percent of entrepreneurs suggested that energy costs were a factor negatively contributing to the problem.

CFIB is also counting on governments to end the 1.5 cent per liter additional federal fuel excise tax originally introduced as a deficit reduction measure; and undertake a review of all forms of federal, provincial, territorial and local fuel taxes — including diesel fuel — in light of the current price environment.