British Columbia’s balanced budget will put nearly $1 billion back in consumer pockets, which gives people more money to spend at restaurants.
“This budget will help British Columbia continue to lead the country in restaurant sales growth,” said Mark von Schellwitz, Western Canada Vice President for Restaurants Canada.
Three initiatives will significantly help Restaurants Canada members cut costs:
- Eliminate PST on electricity over the coming two years, saving businesses throughout the province $164 million by 2019-2020. This measure was recommended by the Commission on Tax Competitiveness and is estimated to save small- and medium-sized businesses about $50 million per year.
- Cut Medical Service Plan premiums in half for B.C. households with an annual family net income of up to $120,000, which also helps small businesses who pay on behalf of their employees.
- Reduce B.C.’s small business corporate income tax rate from 2.5% to 2%. It’s now the second-lowest rate in Canada.
B.C.’s general corporate income tax rate is the lowest in the country, having been cut by almost 35% since 2001. The combined federal-provincial rate is among the lowest in G7 countries.
“B.C. restaurateurs should be pleased with today’s budget. The province’s finances set them up for continued sales and employment growth,” said von Schellwitz.
Restaurants Canada is a growing community of 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast, through services, research and advocacy for a strong and vibrant restaurant industry. British Columbia’s restaurant industry directly employs nearly 172,000, representing more than 7% of the province’s work force