Scanning the news today, I began to wonder how quickly the tide changes from a mood of doom and gloom to sunshine and joy… based on some events that took place in recent days.
News media are happily reporting on the gains made on the TSE today (Thursday) as the Bank of Canada has come out suggesting the recession is over (and noted a 3% rise in economic growth for the Jan-Mar 2009 period), and the Canadian dollar crept up to 92.04 cents U.S.
And today, the BC government has announced they will harmonize the province’s 7% sales tax with the national 5% GST beginning next July. Allegedly done to give the business community a competitive, equal footing with other markets, but to me, I had to look at how it affects me… Mr. Joe Regular. And keeping with the dominant theme of this site, I wondered just how this will affect the power of my dining out dollar.
Brian Bonney, director of provincial affairs with the B.C. and Yukon branch of the Canadian Federation of Independent Business, was interviewed in a Vancouver Sun article and this comment was attributed to him in explaining a very key point for us restaurant fanatics.
“Under the new tax system, the HST will apply to all goods and services to which the GST currently applies, with a few exceptions. So restaurants, for example, will have to start charging 12 per cent on meals when they currently only charge the GST on the meal and the combined PST and GST on alcohol.”
Let’s just hope a corresponding reduction in base prices coincides with this tax hike on restaurant meals.
Weigh in readers…