Montreal meal tax proposal off the table
(Feb. 20/08) Quebec has withdrawn a bill that would have given the City of Montreal the power to levy municipal taxes on restaurant meals, parking, and entertainment events such as movies, sporting events and performing arts events.
The new taxation powers were part of Bill 22, tabled in September 2007 by the province’s municipal affairs minister. Although the bill focused primarily on amalgamation issues on the island of Montreal, it also contained additional taxation powers for the city, similar to those extended to Toronto under Ontario’s City of Toronto Act, passed in May 2006.
CRFA’s Council of Chain Restaurants: Quebec (CCRQ) appeared before a provincial parliamentary commission to voice industry’s opposition to the bill, arguing that the hospitality and entertainment industries were being unfairly targeted by the proposed new taxes, and that the taxes would have a disastrous impact for foodservice operators who continue to struggle with rising labour and food costs.
CCRQ estimated that the taxation powers included in Bill 22 would cost the industry as much as $205 million each year in lost sales.