(Photo: 123RF)

TORONTO – A group of Canadian small businesses has called on the federal and provincial governments to temporarily cancel or reduce fuel taxes.

The Canadian Federation of Independent Business (CFIB) says record fuel prices, supply chain problems and labor shortages have skyrocketed small business operating costs.

It says rising transportation and fuel costs have prompted 92% of small businesses to raise prices over the past 12 months.

The association believes that governments should suspend planned carbon tax increases to make it more affordable for everyone to run business in Canada.

It also requested that the discount limit for small businesses be increased from $500,000 to $600,000, as is currently the case in Saskatchewan, and that the threshold be indexed for inflation each year.

The request comes as Canada’s prime ministers gather for the Federation Council meeting in Victoria.

“Every penny counts for small businesses, especially when faced with soaring input costs and shortages of labor and products,” Corinne Pullman, CFIB’s senior vice president of national affairs, said in a statement.

Three provinces — Ontario, Alberta, and Newfoundland and Labrador — provided temporary relief at the pump. Now the federal government and other provincial governments must follow suit.”

She added that more than half of Canada’s small businesses had not yet returned to normal revenue thresholds and that prime ministers should make small business recovery a top priority.

In May, 460,060 Canadian companies received Canada’s Emergency Wage Support, with the total grant value exceeding $100 billion.