Sunday, March 31, 2013

The HST's grim toll continues in restaurant business even as it disappears

The Harmonized Sales Tax devastated restaurants across British Columbia since it was imposed - as it finally disappears on April 1, remember how many chefs, servers and other staff suffered the results of the extra 7% tax on meals.

Hell's Kitchen bailiff notice

Room Eighteen bailiff notice

Room Eighteen

Hell's Kitchen 
I went for a walk this past week on 4th Avenue in Kitsilano and on just one city block found these two bailiff's notices on two prominent and now closed restaurants - Hell's Kitchen and Room Eighteen.

I do not claim the HST is responsible for their unfortunate closures but without question the HST has killed countless restaurants and jobs since it was imposed by the BC Liberal government in 2010.

You don't need to take my word for that - listen to Per Maltesen, owner of Nanaimo's New York Style Pizza & Pasta and chairman of the B.C. Restaurant and Foodservices Association

"The HST was the worst thing that has ever happened to this industry and it has directly resulted in putting a lot of restaurants out of business in this city and across the province," he said.

"The restaurant industry is the toughest business in the world and the introduction of the HST was the nail in the coffin for many. It's not that we were against the HST, just that this tax on food should never have been a part of it."

The BCFRA estimates restaurants have taken a 9% hit in sales since 2010.

So on April 1, celebrate the end of the HST by going out to breakfast, lunch or dinner at a local restaurant - and tell them you are there because the HST isn't!



Anonymous said...

The HST was a help to big business but really hurt individuals and small businesses especially food and beverage companies.Liberals were warned but only wished to serve the 1%. Shame on all liberals.

Anonymous said...

So if the HST exists in Ontario, and restaurants are obviously existing there what's the problem here?

My guess it isn't solely the HST. Vancouver has a lot of restaurants chasing many people. There has to be more than just the HST that led to some restaurant's demise.

Restaurants closed off even without the HST.

Anonymous said...

Amazing looks like some businesses have upped the price to what you would have saved with the removal of the HST.

Bill Tieleman said...

Anon 12:28 - Restaurant meals in Ontario were already subject to the Provincial Sales Tax so the HST made no difference.

Anonymous said...

Ontario has the HST there Bill. It does affect the restaurants in one way or another in terms of the restaurant purchasing goods and services for its business.

So why the drum and cymbals over two or three restaurants out of hundreds in Vancouver?

But also don't forget those HST rebate cheques are now gone, the $250 to $150 cheques will be down to $50.00.

and alot of silence over Bill VanderZalm bringing in the Property Purchase Tax with consultation with the people.

Anonymous said...

"Restaurant meals in Ontario were already subject to the Provincial Sales Tax so the HST made no difference."

Restaurant meals in Ontario are taxed at 13% just as they were here. They were originally taxed PST and GST, but that carried over into HST, so no difference there.

Here, the restaurant meal was exempt from PST but were taxed GST.

When the HST arrived, the PST was added in. so 5% GST went to 12% HST for restaurant meals in B.C.

7% difference in the bill? That broke a few restaurants? There had to be more than just that to file bankruptcy.

Many restuarants in Vancouver have done just fine with excellent food and service.

But you got what you wanted.

I'll wait for the next dual Bill project against what the NDP decided to do to us in terms of taxes.

My guess is that VanderZalm will go after the NDP, but Tieleman will not.

Henri said...

If this were my blog, I would not insert any one who only identifies themselves as Anonymous. At least if you identified yourself as nincompoop or cull,or dumb and dumber, etc you would at least separate your self from the other dim ones who refer to themselves as Anonymous. Not only do you not get recognition but seldom will anyone converse with an anonymous.....

Anonymous said...

'but seldom will anyone converse with an anonymous....."

Well you did. But you're right.

Maybe one of the Anonymouses should use the name Henri.

and start your own blog. Who knows, you might end up somewhere below Tsakumis, but above Tieleman in terms of readership.

Anonymous said...

Blows my mind how many people still blame Vander Zalm for the property transfer tax, and never tell the entire story, just a selective piece of it. Times were much different in 1987. I wish they would learn history before they open their mouths...

Their beloved BC Liberals have done nothing to update this tax in the past 12 years...

Anonymous said...

The NDP did not update nor alternatively remove the Property Transfer Tax either.