Higher wine taxes yet another hit to Ontario’s restaurant industry

Published February 25, 2016

ORONTO, Feb. 25, 2016 – Tax increases announced in today’s budget are yet another hit on the restaurant industry in Ontario.

“Restaurants simply cannot absorb all the increased costs imposed by the Ontario government,” said James Rilett, Vice President, Ontario. “The ORPP, higher utilities, higher wages, and now today’s announcement of higher alcohol taxes are direct hits to viability of these small businesses.”

The government announced a series of mark-ups, tax increases and minimum prices that will increase the cost of wine for both individuals and businesses. In Ontario, there is no wholesale pricing for bar and restaurant owners.

Ontario has some of the least bar- and restaurant-friendly liquor policies of any province. They received a grade of D+ on Restaurants Canada’s Raise the Bar Liquor Report Card, one of the worst grades in the country, based on high prices and the retail monopoly system.

Restaurants Canada was pleased, however, to see the government confirm its commitment to phase out the debt retirement charge on electricity and the WSIB overpayments.

Ontario’s restaurant industry directly employs 450,000 people, is the number one source of first jobs, and serves 7.5 million customers every day.

Restaurants Canada (formerly CRFA) 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.

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