CRFA speaks out on the HST impact

(Oct. 21/09)

The following letter was published in The StarPhoenix on Oct. 20, 2009:

HST hits consumers hard 

Re: Tories, Liberals must make case to move to HST (SP, Oct. 14). As one of the sectors that will feel a multimillion-dollar "pinch" under a harmonized sales tax, Saskatchewan's food services industry fails to see how a $400 million increase in taxes is "demonstrably in the best interests of the nation."

Consumer taxes will rise dramatically in Saskatchewan under an HST, and this reality cannot be justified by assuring consumers that government revenues won't increase. Premier Brad Wall has rightly said his government is not interested in harmonization until the federal government comes up with a way to offset the $400 million annual tax increase the citizens of Saskatchewan would have to absorb.

The one-time HST funding on offer from Ottawa is nothing more than a temporary fix. The higher taxes being forced on consumers by the HST are permanent.

Your editorial leaves the impression that the transitional compensation the federal government is offering to provinces will take care of any negative impacts on industries that will be hurt by harmonization. That's simply not true.

None of the proposals to date, from the federal, British Columbia or Ontario governments, benefit the food service industry. At best, consumers are being offered one-time tax cuts, which don't come close to covering the $90 million annual increase in taxes on restaurant meals alone, not to mention the drop in sales operators can expect when their customers' taxes go up on countless goods and services, from meals to newspapers and dentist bills.

Courtney Hirota
Vice-president, Manitoba-Saskatchewan
Canadian Restaurant and Foodservices Association

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