The end of the GST/HST holiday brings concerns about rising food prices at restaurants. The article argues for making the holiday permanent, citing its positive impact on job creation and the struggling restaurant industry. It highlights the industry's historical struggles after the introduction of the GST in 1991 and the recent surge in employment following the holiday.
The introduction of the GST in 1991 was devastating to the restaurant industry. An Ernst and Young report found that real restaurant sales dropped 11 per cent that year, much of that a direct result of the new tax.Starting this weekend, Canadians will be paying a little more for food in restaurants as the GST and HST holiday comes to an end.
The introduction of the GST in 1991 was devastating to the restaurant industry. An Ernst and Young report found that real restaurant sales dropped 11 per cent that year, much of that a direct result of the new tax. The food-service industry was forced to lay off 46,000 Canadians that year. Job creation in the industry slowed from an average of 31,135 jobs a year between 1976 and 1990 to just 17,387 between 1992 and 2006.
When the GST/HST holiday was first proposed, it excluded restaurant meals but did include snacks and prepared food at grocery stores, which would have been a further blow to a sector that is already at the brink.
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