(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:
- Full PST exemption for business capital expenditures
- PST exemptions for specific business inputs
- Made in B.C. value-added tax
- 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 our submission to the Commission.
Want to learn more? Contact Restaurants Canada’s Mark von Schellwitz.