Restaurants Canada wants the tax ‘holiday’ made permanent as end nears
The national association representing Canada’s restaurants wants Ottawa’s GST/HST “holiday” made permanent amid early signs it’s helped some cash-strapped Canadians dine out more often.
The Liberal government’s two-month tax break is entering its final week on Friday. It began on Dec. 14 and has offered Canadians a break on the federal portion of sales tax for some groceries, alcohol, popular gifts over the holidays, as well as on dining out.
Restaurants Canada said in a report released Thursday that it expects a $1.5-billion boost in food service sales over the 60-day period than if there were no tax holiday.
Data from online reservation platform OpenTable shows an 18 per cent jump in seated diners over the first two weeks of the tax holiday compared to a year earlier. Ontario, in particular, saw a 23 per cent annual increase.
That contrasts with data from payment processor Moneris, which this week reported a six per cent drop in transaction volume at Canadian restaurants in the first month of the tax holiday.
Kelly Higginson, president and CEO of Restaurants Canada, says the tax holiday has been “really positive” for the food service industry, particularly given weak consumer confidence heading into 2025.
With Canadians historically reining in spending after the holidays, she says the tax break arrived at the right time to put a floor on consumer demand for dining out.
“With the affordability crisis going on, everyone’s been feeling a little pinched in the pocketbook,” she tells Global News.
“Regardless of whether or not there’s year-on-year sales increase … there is no doubt that sales were going to be higher than they would have been without the tax holiday.”
And according to Restaurants Canada, the tax holiday
Read more on globalnews.ca
