A national association that represents your favorite restaurant is calling on the provincial government to slash their portion of the harmonized sales tax (HST) over the holidays.
The federal government recently announced they are giving Canadians a tax break for a couple of months, by cutting GST on things like clothes, toys and restaurant bills.
Now, Restaurants Canada says Nova Scotia should follow the lead of other provinces like Newfoundland and Labrador as well as Ontario and go one step further by giving a complete tax break.
Executive Vice President for Government Relations and Public Affairs with Restaurants Canada, Richard Alexander tells our newsroom, it represents a tremendous, unexpected opportunity that the province should take advantage of.
“It would mean, basically, most things that you’re paying HST on right now, you’d have a tax holiday, so you wouldn’t have to pay that. And I think, you know, the biggest challenge that Nova Scotians are facing…just like other Canadians right across the country…is affordability. And these kinds of opportunities, I think, are not to be wasted.”
How much would you save?
Cutting the GST alone is a 5 per cent discount.
If the HST were also cut, that means you would save 15 per cent at the cash register.
Alexander says that would not only help what’s in your wallet but give a big boost to the economy.
“Our chief economist at Restaurants Canada figures that would result in about $62 million of additional spending at a time when Nova Scotians need it. That’s just our restaurant industry that helps all these little mom and pop restaurants across Nova Scotia to make it through what is a very challenging time.”
Tough times
There is usually a huge plummet in sales right after the holidays, so, Alexander says, eating establishments try to make enough to get them through the dry months.
“There are fewer people going out to restaurants and the industry has been suffering to the point where about half of the restaurants in Nova Scotia are not making any money. We’re seeing closures and that impacts the tourism product. It impacts the jobs associated with those.”
He adds, bankruptcies are also higher in the last eight months, than the last two years and restaurants are the fourth largest employer in the economy.
Affects thousands
Roughly 40,000 people in Nova Scotia are employed either directly or indirectly by the restaurant business.
It generates about $2.7 billion in economic activity every year and with the GST holiday, Alexander says, we are looking at an additional $62 million.
Clock is ticking
There are negotiations happening between the feds and Nova Scotia.
Alexander says in addition to Ontario and Newfoundland and Labrador, other provinces are also talking about it, so we are running out of time to make the move, being only 12 days out before it begins.
“Small businesses…they need time to prepare for this. It’s not simply, flip a switch and you don’t pay 15 per cent on meals in a restaurant. It requires reprograming to sale terminals, talking to accountants to make sure this is done right.”
The GST holiday kicks in December 14 and will last two months.
