|P.E.I. Restaurant Operators Receive Tax Relief|
|Thursday, 19 April 2012 13:38|
CHARLOTTETOWN — The government of Prince Edward Island is preparing to reduce the tax burden on diners and foodservice operators.
P.E.I.’s PST and GST will be combined at a rate of 14 per cent, beginning April 1, 2013, and full-input tax credits will be introduced for foodservice operators so they can grow jobs and investment in the Island’s restaurant industry.
“Merging the two taxes will lower prices for restaurant customers and increase investment in the restaurant industry,” said Luc Erjavec, Atlantic Canada vice-president for the Canadian Restaurant and Foodservices Association (CRFA). “Island operators have been at a competitive disadvantage with both neighbouring jurisdictions and the grocery industry for far too long. Our experience in other Atlantic Canadian provinces shows this first step will help grow sales, investment and jobs.”
At present, P.E.I. restaurant operators charge customers a combined sales tax of 15.5 per cent, and operators do not receive full-input tax credits for the PST portion of their taxes.