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(Jun. 17/08) The threat of a new tax on restaurant meals in Montreal is finally off the table.
The City of Montreal won new taxation powers in an agreement signed with the province in early June, but the power to levy municipal taxes on restaurant meals is not among them.
The deal is part of a package of amendments to Bill 22, which was introduced by the province in September 2007. At that time, Bill 22 focused primarily on amalgamation issues in the City of Montreal but also contained additional taxation powers for the city, including the power to levy municipal taxes on restaurant meals, parking, and entertainment such as movies, sporting events and performing arts events.
CRFA’s Council of Chain Restaurants: Quebec (CCRQ) spoke out against Bill 22, appearing before a provincial parliamentary commission and arguing that the hospitality and entertainment industries were being unfairly targeted, and that the taxes would have a disastrous impact for foodservice operators who continue to struggle with rising labour and food costs.
In response to concerns raised by CCRQ and other business groups, Quebec withdrew Bill 22 in December, but continued to work with the city in an effort to resolve ongoing administrative and financial disputes.
It is expected that these amendments will be submitted to the National Assembly for a vote before the current session ends later in June.
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