(Nov. 30/16) The B.C. government is looking at a report that recommends a made in B.C. value-added tax (VAT) that could add a consumption tax on restaurant meals. This is not good news as all restaurant meals are currently PST- exempt.

These recommendations come from the B.C. Tax Competitiveness Commission, which looked at ways to improve the province’s business tax competitiveness.

The Commission’s report makes four short- and long-term recommendations:

  1. Full PST exemption for business capital expenditures
  2. PST exemptions for specific business inputs
  3. Made in B.C. value-added tax
  4. Industry-Municipal investment arrangements

 

What we’re doing

Restaurants Canada has told the Commission that our industry can’t absorb another tax increase, especially when competing with zero-rated grocery store food (i.e. food which is taxed at a rate of zero). The Commission took this into consideration and suggested a 2.5% tax on restaurant meals, instead of the full 7% sales tax. If the government considers this option, we will still fight to maintain the full PST exemption on restaurant meals.


Read the B.C. Tax Competitiveness Commission’s report
.

Read our submission to the Commission.

 

Want to learn more? Contact Restaurants Canada’s Mark von Schellwitz.

 

1 comments

One response to “B.C. to consider a tax on restaurant meals?”

  1. Paul McKay says:

    Governments need to be seen as ‘fair’. The “Level Playing Field” concept is central to this dicussion, as per the comment in the Submission: “The problem with GST is that besides reducing demand for restaurant meals by imposing a new tax on restaurant consumers, the industry’s closest competitors, prepared meals available in grocery stores, remain tax-exempt.”

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