Quote:
Originally Posted by djmk
the price of a restaurant meal will not decrease. currently, restaurants major costs (food and labour) do not have GST or PST. Claiming the "ITC" of the PST will have almost no effect on how much the restaurant will be to remit back. However, where they might positively affected is in the purchase of alcohol. Currently, there is a double taxation in alcohol. The restaurant pays it to purchase it and the customers pays it to drink it. Also this will drop from 15% to 12%
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Restaurants are the obvious example of where things will get more expensive, that's the whole point.
I have it on good authority the LDB will be increasing prices 3% to compensate for the lower tax rate.
