Federal budget caps liquor tax hike, provides money for tourism

The Liberals’ new federal budget has some positive and negative aspects for businesses, according to the Kelowna Chamber of Commerce.

The $490 billion budget was tabled in the House of Commons Tuesday.

“It’s a budget designed to blunt the effects of 2023 inflation and the economic recession,” Chamber CEO Dan Rogers said. “On first read, without the detail which will follow, there is some good news for businesses in the Okanagan.”

Rogers said the capping of the alcohol excise tax from 6.3 per cent to 2 per cent for one year, effective April 1 is good news.

The government has also negotiated lower credit card fees paid by small business on an average of 27 per cent on Visa and MasterCard payments, plus implementing some cybersecurity measures through the credit card system.

“There is also a renewed commitment to bring provincial and federal leaders to the table to finally address interprovincial trade barriers, which would result in immediate gains for BC business,” Rogers added. “Removing interprovincial trade barriers has been something the Kelowna Chamber has been actively advocating for.”

The Chamber said the negatives include no clear plan for GDP growth (0.3 per cent growth in 2023); and the digital services tax (3 per cent on top of GST) is going forward.

A big national win for the Chamber network is the proposed new National Supply Chain Strategy with trade enabling infrastructure.

“While the strategy hasn’t even been developed yet, the Kelowna Chamber believes it is a step in the right direction,” Rogers opined.

Tourism also benefits with $108 million over three years to regional development agencies plus $300 million to attract international events.

“The details on this funding will likely be front and centre when the Kelowna Chamber hosts Associate Minister of Finance and Minister of Tourism, the Hon. Randy Boissonnault, in Kelowna at a post-budget luncheon on Thursday April 6 at 12 noon at the Coast Capri,” Rogers informed.

Tickets for that event with the Federal Tourism Minister and Edmonton Centre MP are on sale now with limited seating available.