Madam Speaker, today, as always, I am pleased to rise to speak on behalf of the constituents of Aurora—Oak Ridges—Richmond Hill, especially since I am speaking on the positive measures that our government is implementing to support small businesses and restaurants, including the proposed removal of the taxes, GST and HST in some provinces, from groceries and other holiday items.
I would just note that many provinces, such as Ontario, and Newfoundland and Labrador, have already agreed that they will be removing their provincial part of the HST. They see the benefit of this through their leadership, even though the Leader of the Opposition cannot see the benefit.
Now, I understand the holiday period is one of the most critical times for small businesses. They are making a significant proportion of their annual sales, helping them to achieve their annual goals. We had small businesses, and I know that the holiday season made a huge difference. Consumer spending and encouraging people to come out and buy things is very important to these small businesses.
Thanks to our government's efforts, I am glad to report that Canadians from across the country will receive a tax break from December 14 to February 15, helping both consumers and businesses. This will make a meaningful difference for Canadians by making all food, as well as other holiday provisions and children's clothing and toys tax-free, providing real relief at the cash register. Importantly, it will also contribute to improved sales and greater revenues for businesses and restaurants from mid-December through to mid-February, as I have said.
Many small business stakeholder groups have expressed appreciation and support for this. For example, Restaurants Canada has said, “This is a big win for the restaurant industry...restores some much-needed hope to our industry and we are optimistic it will translate to increased spending at local restaurants across the country.” Ultimately, this could mean a boost of up to 5% or close to $1 billion in additional revenue. That is significant.
The Retail Council of Canada also welcomed the sales tax relief announced from the government, stating, “The removal of GST and HST on a sizable list of goods will create major tax savings for Canadians, along with economic stimulus for our industry.” Notably, they also reported that this stimulus will support businesses both through the holiday season and in the first six weeks of the new year, which is typically the slowest period of the year for retail and restaurants.
We expect the tax break will help restaurants and other small businesses across the country. I am glad that we can offer this support through the holiday season. I encourage Canadians to take advantage of the opportunity for savings and to shop local as they purchase gifts for friends and loved ones, and to patronize local restaurants if they are planning a holiday outing.
I also want to speak to many other initiatives our government is delivering to support small businesses. We will always support hard-working entrepreneurs who contribute significantly to their communities, support good jobs and enable economic growth. Our small and medium-sized businesses are the bedrock of our communities, and it is essential they thrive.
From digital transformation to greening our economy while creating well-paying jobs, our government has an economic plan that will ensure businesses across the country continue to grow and thrive. That is why we are delivering $2.5 billion to close to 600,000 small and medium-sized enterprises by the end of the year through the Canada carbon rebate. In fact, the rebate checks have gone out earlier than anticipated and started to be sent out this past week.
Reports say that 60% of small businesses are directly impacted by climate change. From floods and droughts to closures and employee absences caused by extreme weather events and illnesses, small businesses are feeling the impact of climate change. We are going to continue fighting it while putting money back into the pockets of Canadians and small businesses.
I am also pleased to report that we have negotiated agreements with both Visa and Mastercard to reduce their interchange fees by up to 27% or $1 billion over five years. This means that small businesses, like the businesses in my riding, will be able to keep more of their revenue and be able to invest in their operations, creating jobs and strengthening our overall economy. This will make a meaningful impact for these businesses, improving their bottom line. These are in addition to and build on our government's work to alleviate the global economic pressures that businesses have been facing, pressures such as inflation, interest rates hikes and worker shortages.
Then, to help Canadian businesses thrive even more, we have invested in them through the Canada summer jobs program, which we are doing again this year, and, in fact, that has just opened. There is also the My Main Street program. One of the first things that this government did to support small businesses was to lower the small business tax rate from 11% to 9%. We cut taxes. This was done in recognition of the vital role small businesses play in our economy and our communities.
In 2024, estimates are that small and medium-sized enterprises will save $6.2 billion because of this decrease made to the preferred small business tax rate bias. To encourage Canadian innovators to turn their ideas into businesses, we announced the creation of the Canadian entrepreneurs' incentive that would reduce the inclusion rate on capital gains to one-third on a lifetime maximum of $2 million in eligible capital gains. Combined with the increased $1.25-million lifetime capital gains exemption, the entrepreneurs' incentive would make eligible business owners better off when selling business shares worth up to $6.25 million.
The government's 2024 budget devoted $200 million to renewing the venture capital catalyst initiative, or VCCI, with a goal of supporting venture capital for entrepreneurs who are part of equity-deserving groups and investing in underserved communities as well as in entrepreneurs who live outside key metropolitan areas. This investment builds on the previous $821 million the government has already invested in VCCI, as well as the multiples of that amount that came in through private capital attracted by these investments and supportive of innovative Canadian businesses.
Study after study show us that increasing diversity in business ownership responds to market needs, strengthens economic resilience and boosts the bottom line. We also know it is the best way to support economic growth, so we have created a suite of initiatives to ensure that all business owners have access to the capital they need to start or grow their businesses. We have given young people the option to choose entrepreneurship as a viable career path. That is why we invested $60 million in Futurpreneur Canada to help the organization increase its capacity to support young Canadian entrepreneurs. These investments will support shared prosperity long into the future. We are boosting government procurement in small and medium-sized enterprises, as well as supporting indigenous enterprises. We understand that the best products and ideas often originate here in Canada and we want to ensure entrepreneurs are equipped with the tools they need to bring their ideas to fruition.
I am confident that these combined measures will continue to make a real, tangible difference for all businesses from coast to coast to coast. In summary, this government has made unprecedented investments to support Canada's small business community, from important tax relief to a range of incentives to support business owners and entrepreneurs, to the extensive COVID support measures through the pandemic period. No other government has done so much for small businesses.
In closing, I urge all members of Parliament to vote for the legislation before them, quickly and unanimously, to ensure business owners and consumers can receive the benefits of these tax breaks and have more money and less stress during the holiday season. I ask members to not be a Grinch, even if their leader is. I ask them to think of all the Whos in Whoville or perhaps all the constituents in their own riding and give them a well-deserved break this holiday season.
