THE political wrangling over a carbon tax was already hitting the economy, according to a Gold Coast business leader.

Connecting Southern Gold Coast general manager Jim Wilson said no small business knew how a carbon tax would affect them, so they were already tightening their belts.

“You find me one small business or one tourist here that knows how the carbon tax will affect them. There is so much uncertainty that people are losing confidence,” Mr Wilson said.

“One thing is for sure, tourism and manufacturing are going to find it tough.”

Mr Wilson said the carbon tax was too soon after the global financial crisis.

“Would it make any difference if we start this tax in five years,” he said.

Prime Minister Julia Gillard said yesterday only about 500 of the biggest polluting companies will pay the full carbon price, and small business won’t be hit with extra red tape.

“This figure of 500 strongly reinforces the point that this is a price being paid by a limited number of big businesses; it is not being paid by Australian families,” she said.

Ms Gillard refused to confirm media speculation of a $23 per tonne starting price.

Tweed’s Greens candidate at the last state election Andrea Vickers admitted the uncertainty was worrying the community.

“People I’ve talked to in the local community have mixed responses to the carbon tax, but that’s mostly because there is a scare campaign going on about how it will affect the cost of living,” Ms Vickers said.

“Let’s remember that the cost of living without a carbon price might be a lot higher if our environmental systems collapse around us.”