Related Information Let them eat caviar (CRFA op-ed on thestar.com) (Mar. 31/09) CRFA letter to Opposition Leader Stéphane Dion re: the GST and sales tax harmonization [PDF] (Oct. 30/07) CRFA letter to Prime Minister Stephen Harper re: sales tax harmonization [PDF] (Oct. 19/07) News Archives 2006 2005 2004

GST and Harmonization News Headlines

• Restaurants disappointed by broken promises on HST (Mar. 2/10)
• Restaurateurs say HST increase is the wrong recipe for economic growth (Feb. 8/10)
• Open Letter to Premier Campbell and Finance Minister Hansen (Jan. 29/10)
• Just say no: HST campaign delivers message in B.C. (Jan. 18/10)
• CRFA launches campaign to fight HST in B.C. (Dec. 11/09)
• No surprise – British Columbians do not want a new meal tax (Dec. 3/09)
• Open Letter: Restaurant industry urges parties to ensure food tax fairness in B.C. (French) (Dec. 1/09)
• $4.00-meals beat HST in Ontario (Nov. 17/09)
• CRFA speaks out on the HST impact (Oct. 21/09)
• CRFA keeps up the HST pressure (Oct. 20/09)
• Federal pre-budget hearings underway (Oct. 20/09)
• Fair treatment for Ontario licensees … it’s time! (Sep. 11/09)
• B.C. budget leaves restaurant industry hungry for answers (Sep. 1/09)
• Saskatchewan alert: HST on the horizon? (Aug. 6/09)
• B.C.'s HST bad news for restaurants, consumers (Aug. 5/09)
• Restaurant owners say the HST will significantly hurt their business (Aug. 4/09)
• HST tax increase delivers huge hit to B.C. families and tourists (July 23/09)
• Let them eat caviar (CRFA op-ed on thestar.com) (Mar. 31/09)
• Food tax fairness missing from Ontario budget (Mar. 27/09)
• Restaurant industry seeks food tax fairness (Mar. 26/09)
• New Brunswick budget good news for foodservice (Mar. 19/09)
• Restaurant industry calls for action in upcoming Ontario budget (Feb. 6/09)
• Restaurant industry: Now is not the time for higher taxes (Dec. 16/08)
• Ontario’s rejection of tax harmonization good news for consumers (Mar. 26/08)
• Saskatchewan rejects harmonized sales tax (Jan. 28/08)
• The harm in tax harmonization (Jan. 16/08)
• GST drops to 5% on Jan. 1: what you need to know (Dec. 19/07)
• Restaurant industry welcomes Ontario tax relief (Dec. 14/07)
• Economic statement delivers good news (Oct. 31/07)
• Foodservice industry applauds Ottawa’s recipe for tax relief (Oct. 31/07)
• Foodservice industry applauds federal tax proposals (Oct. 18/07)

CRFA’s position on GST and Harmonization

The harmonization of the federal goods and services tax (GST) with provincial retail sales taxes has gained attention recently, with federal government incentives to harmonize as a way to address the “fiscal imbalance." Non-harmonized provinces are being encouraged to significantly shift the retail tax burden from businesses to consumers - forcing a broadening of the tax base or an increase in the rate to compensate for the revenue loss from the removal of retail sales taxes on business purchases.

By zero-rating food sold in grocery stores or convenience stores, such as a 250ml carton of milk, but taxing similar and identical products in a restaurant or cafeteria, the GST puts the foodservice industry at a unique competitive disadvantage. A harmonized sales tax would only exacerbate the discriminatory application of the GST on food.