The Greater Vernon Chamber of Commerce is ambivalent on the 2023 federal budget, saying it’s a positive step for entrepreneurs but demonstrates a “lack of vision” when it comes to economic growth.
Finance Minister Chrystia Freeland presented the federal budget in the House of Commons Tuesday, March 28.
“While specific details are still to come, the budget document contains a number of items that will have a positive impact on the business environment in the North Okanagan and across the country,” Dan Proulx, Greater Vernon Chamber general manager, said in a press release Wednesday, March 29.
“We are pleased to see that the government has negotiated lower credit card fees paid by small businesses on an average of 27 per cent less, while we welcome movement towards a national supply chain strategy and addressing interprovincial trade barriers. Additional funding for tourism will also be beneficial in a region such as ours that is reliant on the tourism sector.”
However, the chamber also has some concerns about the budget.
“The government is forecasting gross domestic product growth of 0.3 per cent in 2023, and Canadians require a solid vision that will add vitality to our economy and create employment opportunities,” said Proulx.
The chamber has concerns that the budget lacks focus on ramping up housing construction particularly as Canada attracts more immigration. It is also concerned that a three per cent digital services tax will place another burden on businesses.
The chamber takes issue with an increase to the Air Travel Security Charge, with funds going to passenger screening and baggage handling at airports, saying this will only download these costs onto travellers and make it more expensive to travel, impacting the tourism sector and facilities such as Kelowna International Airport.
Lastly, the chamber points to the alcohol excise tax that is being capped from 6.2 to two per cent for one year.
“However, the federal government needs to bring taxes in line with the U.S. to encourage expansion of distilleries, cideries, wineries and breweries that strengthen tourism and agriculture,” the chamber states.
READ MORE: What you need to know about the B.C. government’s 2023 budget
READ MORE: Budget relief ‘lacking’ for citizens: Greater Vernon Chamber