(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.



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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