Tuesday, December 22, 2009

Restaurants choke on prospect of HST

Susan Lazaruk, The Province December 22, 2009

Restaurant owners are stepping up their protest over the HST on meals by launching a website and petition and by teaming up with unlikely allies, the NDP. The B.C. Foodservices and Restaurant Association and Nnew Democratic Party MLA Spencer Herbert warned Monday of dire consequences from the additional tax of seven per cent on meals and takeout food when the proposed harmonized sales tax is brought in July 1. Restaurateur Daniel Frankel said that taxing meals by seven per cent on top of the five-per-cent goods and services tax, 10-per-cent liquor tax and 15-to-20-per-cent tip will add more than a third to diners' bills. "From our perspective, the restaurant and tourism industry is very depressed right now," Frankel said. "We want to educate our customers and have them speak up against the tax before the March signing deadline." Frankel said that adding more taxes will make B.C. unattractive for visitors, compared with Washington state and Alberta, which don't have provincial or state taxes."We're making it difficult for people [outside B.C.] to choose us," he said.

The restaurant association predicts a loss of 20,000 jobs because it fears fewer people will visit restaurants and they will spend less on food when they do. It has launched the www.nomealtax.ca website, which has so far received more than 5,400 hits, where supporters can sign an online petition or send letters to politicians. Herbert wouldn't commit to reversing the tax if the New Democratic Party ever takes power. "We haven't actually seen the legislation yet," he said. The association, which traditionally supports the Liberals, joins other diverse HST opponents, which include former premier Bill Vander Zalm and the B.C. Federation of Labour. Harmonizing sales taxes are designed to make businesses more competitive by lowering the tax rate businesses pay.

No comments: