Navigating Change: What Canada's 2025 Federal Election Means for Small Businesses

Sahilpreet
Jun 3
2 min read

The 2025 federal election ushered in a new era for Canada, with the Liberal Party, led by Prime Minister Mark Carney, forming a minority government. This political shift brings a series of policy changes and economic strategies that directly impact small and medium-sized enterprises (SMEs) across the country. At Sahil & Meher Accountants and Consultants, we understand the importance of staying informed and adaptable in the face of such changes.

Key Policy Changes Affecting Small Businesses

Elimination of the Federal Consumer Carbon Tax

One of the Carney government's first actions was the removal of the federal consumer carbon tax, effective April 1, 2025.While this move aims to alleviate financial pressure on consumers, it also has implications for small businesses, particularly those in energy-intensive industries. The industrial carbon levy remains in place, so businesses must continue to monitor and manage their carbon footprints accordingly.

Cancellation of the Capital Gains Tax Increase

Introduction of the Digital Services Tax (DST)

Support Measures Amid U.S. Tariffs

Implications for Small Businesses

These policy changes present both opportunities and challenges for small businesses:

Financial Planning: The cancellation of the capital gains tax increase allows for more favorable conditions when selling business assets, necessitating a review of long-term financial strategies.
Operational Costs: The elimination of the consumer carbon tax may reduce certain operational costs, but businesses must remain vigilant regarding the industrial carbon levy and potential indirect costs from the DST.
Market Diversification: The government's support measures encourage businesses to explore new markets, which can lead to growth opportunities but also require careful planning and resource allocation.

How Sahil & Meher Accountants and Consultants Can Assist

At Sahil & Meher Accountants and Consultants, we are committed to helping our clients navigate these changes effectively:

Tax Strategy Development: We can assist in developing tax strategies that align with the new policies, ensuring compliance and optimization of tax liabilities.
Financial Advisory: Our team offers guidance on financial planning, helping businesses adapt to changes in operational costs and explore new market opportunities.
Regulatory Compliance: We provide support in understanding and complying with new regulations, such as the DST, to mitigate potential risks.

Staying informed and proactive is crucial in this evolving economic landscape. Contact us today to discuss how these changes may affect your business and how we can support your continued success.