2024 has been a struggle for restaurants in the Central Okanagan, with a number either closing or moving to less expensive locations.
This holiday season could be do or die for some, but will a federal government incentive to get Canadians spending be a lifeline? Starting December 14 and continuing until mid-February, restaurant meals will be exempt from GST, along with a list of other goods including children’s clothing, toys, beer, wine and cider and Christmas trees.
“If you look at a restaurant bill of say $100, you’re talking here about saving $5. I don’t think that people are going to rev up their cars and head out for that, I really don’t,” said Ian Tostenson, president and CEO of the BC Restaurant and Food Services Association.
He points out that there’s also a significant downside for businesses that will have to adjust their point of sale and accounting systems to remove the GST.
“I haven’t had anybody going, this is great, I can hardly wait to spend all my staff’s time training them,” said Tostenson, noting that while wine, beer and cider will be exempt from the federal tax, spirits are not.
“So, I’m going to go, you took it off my wine, you didn’t take it off my spirits? Are we going to have those discussions at the tableside? Is that what our servers are going to be wanting to deal with?
“I think it’s a misguided policy,” adds Tostenson.
Rather than a temporary GST cut, he’d like to see governments do more to increase consumers’ disposable income, so dining out is back on the table.
