FOR IMMEDIATE RELEASE
December 14, 2012
MONTREAL – The Canadian Restaurant and Foodservices Association (CRFA) welcomes Quebec’s decision to give restaurant owners a year to pay the retroactive tax increase on beverage alcohol announced in its Nov. 20 budget. Restaurateurs will now have to pay Revenue Quebec the additional tax on their existing inventory by Nov. 21, 2013, instead of Dec. 21, 2012.
“Restaurateurs are still suffering from the whiplash of the surprise tax hike,” says Garth Whyte, CRFA’s President and CEO. “This payment extension gives them some time to catch their breath. It also gives the Quebec government time to rethink a bad tax – one that hurts a sector that employs more than 200,000 people across the province.”
CRFA has strongly opposed Quebec’s decision to raise alcohol taxes, especially on restaurants’ existing inventory.
“We wrote to Minister Marceau urging him to meet with us and better understand how this tax impacts our industry,” says Whyte. “We’re pleased that he is open to keep talking with our restaurant operators. It’s imperative he understands how this tax will squeeze our industry, which is already operating on a narrow pre-tax profit margin of just 4.4%.”
CRFA is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canada’s $65-billion restaurant industry employs more than 1.1 million people in communities across the country.
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