Canadian Convenience Stores Association

Canadian Convenience Stores Association

April 21, 2015 18:04 ET

Canada's Convenience Stores Applaud Federal Budget

OTTAWA, ONTARIO--(Marketwired - April 21, 2015) - The Canadian Convenience Stores Association and the over 25,000 convenience store retailers it represents are praising the federal government for measures included in Budget 2015 which will help small business owners and operators in the convenience industry. In particular, the CCSA is applauding no additional taxes on tobacco products or gasoline, a commitment to fighting Canada's underground economy, and measures that will help Canada's small businesses grow.

No Excise Tax Increases on Tobacco, Gasoline Help Small Businesses

The CCSA is applauding the government's decision to not increase the federal excise tax on tobacco or gasoline in this budget. Contraband tobacco is sold without mandated health warnings and without age verification checks, to anyone willing to buy. Tax hikes in previous years have driven the tobacco market underground, meaning these products are both more affordable and more accessible to youth. "The CCSA wants to express its gratitude to the federal government for standing up for small businesses by not implementing any new taxes on tobacco," CCSA President Alex Scholten stated. "Tobacco tax increases only further push sales to the illegal market where criminal activity is rewarded and where small businesses and government revenues are punished." The CCSA also applauds the federal government's efforts to fight the underground economy with an announced $118.2 million in funding over the next five years going to the CRA's Underground Economy Specialists Teams.

Convenience store retailers have also warned against an increase in taxes on gasoline, as tax-free gasoline sold on first nations' reserves has also impacted the convenience store industry. "Many of our stores that have gas bars would have been hurt by a gasoline tax increase as the price differential between gasoline sold at their sites with all applicable taxes charged compared to gasoline sold on reserves without tax would be made even more pronounced had federal gasoline taxes been increased. We are happy that this was not introduced today."

Improving the Conditions of Small Business

The CCSA is also applauding the federal government's efforts to improve the conditions in which small businesses operate in an effort to help them grow as announced in the Economic Action Plan 2015. The CCSA believes two measures in particular will help its retail members remain competitive and hire more young Canadians. These measures include: a reduction in EI premiums from their 2016 rate of $1.88 to a $1.49 rate in 2017, a reduction of 21%; and a reduction of the small business tax rate from 11% to 9% by 2019.

ABOUT THE CCSA

The Canadian Convenience Stores Association (CCSA) is a national not-for-profit trade association that represents the interests of over 25,000 convenience store retailers operating in Canada. Our mission is to foster the success of the convenience store industry in Canada by representing the best interests of our members, and the communities they serve. We accomplish our mission through government relations and advocacy, promoting the professionalization of the industry and creating industry recognition and awareness.

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