HST Tax Increase 5% --> 12%

[metroXpress]

HST tax increase delivers huge hit to B.C. families and tourists

VANCOUVER, July 23 /CNW/ - The harmonized sales tax announced today will
deliver another blow to British Columbia's struggling tourism industry. The
tax on restaurant meals will jump from 5% to 12%, hitting families in the
wallet and discouraging international tourists.

"This government made a promise less than three months ago to the people
of British Columbia that there would be no new taxes," says Mark von
Schellwitz, Vice President Western Canada for the Canadian Restaurant and
Foodservices Association (CRFA). "Harmonization will result in a permanent tax
shift of hundreds of millions of dollars to our customers."

To make matters worse, a 12% tax will likely accelerate the sharp decline
in international tourists visiting British Columbia. "U.S. tourists are
already shocked by the 5% GST when they dine out in B.C.," says von
Schellwitz.

The HST will also discourage local restaurant customers, who can buy the
same or similar food tax-free at grocery stores. Grocery stores now offer
frozen, heat-and-eat versions of just about every item on a restaurant menu -
from lasagne to samosas - and all tax free.

"As one of the largest employers in British Columbia, we're deeply
concerned about the damage the HST will do to restaurant owners, their
customers and their employees," says Garth Whyte, CRFA President and CEO.
"Government should be creating the conditions for these businesses to prosper
and grow. The significant tax increase on restaurants caused by harmonizing
the PST and GST in this province will do precisely the opposite."

The HST will result in a permanent drop of $750 million a year in
restaurant sales in British Columbia - or nearly $50,000 per year for the
average restaurant - according to a CRFA calculation using an econometric
model from the Conference Board of Canada.

More than 173,000 people, representing 7.5% of the workforce, are
employed in British Columbia's restaurant industry.

CRFA is one of Canada's largest business associations, with 33,000
members representing independent and chain restaurants, bars, caterers,
institutions and other foodservice providers. Canada's $60-billion foodservice
industry employs more than one million people in communities across the
country.



For further information: Mark von Schellwitz, CRFA Vice President
Western Canada, (604) 685-9655 or mark@crfa.ca; Jill Holroyd, CRFA Vice
President Research and Communications, (416) 649-4217 or jholroyd@crfa.ca

http://www.newswire.ca/en/releases/a.../23/c8450.html

[Yume-sama]

Wow, that is crazy. Too much!

[metroXpress]

No more dinning out

[WBC]

Originally Posted by Allen

No more dinning out

well that's easy to fix - just tip 3-8% as opposed to 10-15% and if restaurants don't like it they can talk to their MP and loby the government for HST exemption.

[GMasterAres]

Do they actually think a lot of people will stop going to restaurants because they are paying 12% instead of 5%? I think all that will happen is people will leave less of a tip.

On $100 meal the difference is $7. If someone is deciding not to go out to dinner because of $7 they're cheap and probably wouldn't go out anyway. I don't see what the fuss is about honestly.

*shrug*

And tourists have to eat. I've never known someone to say "I'm not going to visit France because the food is expensive." Again anyone making a decision not to go visit somewhere because restaurants chargve 12% instead of 5% tax, aren't going to go there anyway in the first place.

Over hype.

[ravman]

DONT BLAME ME....

I VOTE NDP

[CBeats]

Originally Posted by ravman

DONT BLAME ME....

I VOTE NDP

We're not blaming you.

Although I wish we could...

[Yume-sama]

Originally Posted by ravman

DONT BLAME ME....

I VOTE NDP

Guess that would have enabled me to blame when you every other tax goes up

[vid]

We should bring back the GST reimbursement programme for non-Canadians. The programme basically allowed tourists to keep their receipts, and when they get to the border, they can go into customs, claim them and get the money spent on GST back, so it was like they were exempt from GST. Harper ended it about a year ago, claiming it wasn't used. (It wasn't well known enoujh.)

[Yume-sama]

Originally Posted by vid

We should bring back the GST reimbursement programme for non-Canadians. The programme basically allowed tourists to keep their receipts, and when they get to the border, they can go into customs, claim them and get the money spent on GST back, so it was like they were exempt from GST. Harper ended it about a year ago, claiming it wasn't used. (It wasn't well known enoujh.)

Hmm, does the USA have this? If so, never used it.

I know Japan does, but at the point of purchase, they will take your passport and make you fill out about a 10 page thing per item...

[jlousa]

The Gst rebate for tourists was canceled because it was hardly used, in fact I beleive that it was costing more to administer then they were even refunding.

The fact is the PST is already included in costs passed onto the consumer now, in theory prices will be able to be lowered by businesses (of course we know this won't really happen). There are numerous items as well that will become exempt completely. One of the biggest ones is used cars, which were GST exempt but still had PST if bought off a car lot, now there would be no tax, so a 7% reduction right there.

This shouldn't be much of a surprise though as most economists were predicting this.

[waterloowarrior]

in Ontario we have 13% tax on restaurant meals (over $4), and people still tip their 10-15%.....

[vid]

The GST rebate was, as far as I know, only promoted and heavily used in Northwestern Ontario. Our tourism boards regularly mentioned it in advertisements and campaigns in the upper Midwest. I think about 50% of the claims came from the Pigeon River and Fort Frances border crossings.

If they advertised it better, it would have been used.

[mr.x]

Hopefully, there are rebates and exemptions particularly on things like food. I'm against it, but I'm not raving irrational protest mad as some people are.

[Stingray2004]

So Newfoundland and Labrador, Nova Scotia and New Brunswick have had the HST for approximately a decade and Ontario is also implementing same on July 1, 2010 (like BC).

What the BC gov't claims:

It’s estimated the HST will remove over $2 billion in costs for B.C. businesses.

Who in BC supports same:

1. B.C. Business Council
2. B.C. Progress Board
3. B.C. Chamber of Commerce
4. Canada West Foundation
5. Conference Board of Canada
6. Chartered Accountants of British Columbia
7. Retail Council of Canada
8. Canadian Manufacturers and Exporters
9. Certified General Accountants – British Columbia
10. Certified General Accountants – Canada

http://www2.news.gov.bc.ca/news_rele...017-000141.htm

It also looks like the 7% PST portion will be added to the "services" sector resulting in additional costs to the consumer.

OTOH, BC will apparently save $30 million/year in PST administration costs.

The "candy in the store" is the apparent $1.6 billion in additional fed funding to the province. That sum will go a long way in reducing the 2009/10 annual fiscal deficit and apparently keep government service levels at current or higher levels.

Without that "carrot", in conjunction with current provincial fiscal woes, I doubt that BC would have joined the HST program.

It's always a zero sum game... but that additional $1.6 billion funding from the feds will certainly come in handy right now.

PS. I'm not a fan of it either.

[SpongeG]

Originally Posted by Yume-sama

Hmm, does the USA have this? If so, never used it.

I know Japan does, but at the point of purchase, they will take your passport and make you fill out about a 10 page thing per item...

you know what i found on my last trip to california - if you go to Bloomingdales and see the concierge - they will give you a card that entitles you to 10% off everytime you shop at bloomingdales on your holiday - even sale prices - I believe Macy's offers the same kind of deal - worth checking out if your travelling

South Africa offers a GST rebate for tourists but it was only items not like food or hotels - and to get it you had to show them all the recipts and all the various items - so it was like stupid since its all packed away

I know in the UK shoppers from certain countries - this was at Marks & Spencer anway - can use a special cashier on one of the floors where they can buy without paying some taxes - when i was there Canada was not included in their scheme - the US was though

[SpongeG]

I knida liked having only the GST on food - when I moved to Ontario way back long ago - I was shocked the amount of tax they paid at restaurants - compared to us in BC

[metroXpress]

Only if TransLink can steal some of the money from this tax hike...

[quobobo]

Originally Posted by Stingray2004

It's always a zero sum game...

Negative sum, actually

[WarrenC12]

Originally Posted by Stingray2004

It's always a zero sum game... but that additional $1.6 billion funding from the feds will certainly come in handy right now.

PS. I'm not a fan of it either.

I'm not a fan, but I agree the $1.6b will come in handy. Increased taxes were almost inevitable with the deficit, and I'm glad to see they are consumption taxes rather than income taxes.

Here's another link that provides some more info on things that will still be exempt from a portion of the HST:

http://finance.sympatico.msn.ca/inve...entid=20851570

jlousa what makes you believe used cars will not be subject to HST now?