The Canadian Federation of Independent Business (CFIB) is urging the British Columbia government to temporarily suspend provincial motor fuel taxes after the federal government announced a short-term pause on the federal excise tax on gasoline and diesel.

The group says matching the federal measure would provide immediate relief for households and small businesses facing rising operating costs, particularly those heavily dependent on transportation and fuel.

“Small businesses tell us they are increasingly worried about the impact of rising fuel prices,” said Ryan Mitton, CFIB Director of Legislative Affairs for B.C. “Those costs are beginning to show up on store shelves and invoices as they get passed onto consumers.”

CFIB estimates that temporarily suspending provincial fuel taxes could reduce pump prices by roughly 27 cents per litre in Vancouver, 20 cents in Victoria, and about 14.5 cents in other parts of the province.

For example, the organization says a construction contractor operating a standard pickup truck in Vancouver could save approximately $23 to $24 per tank of gas under such a measure.

“Entrepreneurs don’t need a task force to tell them the price of gas is too high,” said CFIB Senior Policy Analyst Kalith Nanayakkara. “Removing gas taxes is one simple way to provide immediate cost relief.”

Rising cost pressures for small business

CFIB data cited by the organization shows fuel costs have become an increasing concern for small businesses in B.C. In March 2026, 35% of businesses reported fuel cost constraints, rising to 45% in April — a 10-point jump in a single month.

Nanayakkara said fuel is a “basic cost of doing business” for sectors such as delivery services, retail, and construction, and higher prices typically lead to increased costs for consumers.

“Small businesses either absorb that cost or pass it on,” he said in an interview. “More often than not, consumers end up paying more.”

He also pointed to broader cost pressures, including recent provincial tax changes and an expansion of the PST to certain professional services, arguing that multiple increases are compounding financial strain on businesses.

Confidence at multi-year lows

Beyond fuel costs, CFIB says overall small business confidence in B.C. remains weak. The organization reports the province ranks second-last in Canada for long-term business confidence.

According to CFIB survey results, 63% of B.C. small businesses say they would not recommend starting a business today, compared with 55% nationally.

Nanayakkara added that B.C. is experiencing what CFIB describes as an “entrepreneurial drought,” with more businesses exiting the province than opening for six consecutive quarters.

“That’s a massive problem,” he said. “When entrepreneurs leave, jobs are lost and government revenue is reduced. It should be a wake-up call.”

Call for policy response

CFIB is calling on the provincial government to mirror the federal tax suspension as a temporary measure while broader affordability and regulatory issues are addressed.

The organization says tax and regulatory costs remain the top input constraint for small businesses in the province and warns that continued cost increases could further weaken investment and job creation.

“We need to be an attractive place for entrepreneurship and investment,” Nanayakkara said. “We can’t afford to keep losing businesses and the jobs they create.”