You’re not wrong.
The tipping is on the tax at most places too, which isn’t right to begin with. Now the restaurant workers will lose out on the tip value on top of the GST.
So the restaurant association is was not totally up front about the impact of removing the GST. It’s in fact a savings of 5%, plus tipping on that 5%.
Also, restaurants get to keep a portion of the GST they collect. That wasn’t mention in the interview, but it should be, because that’s another source of revenue that has now disappeared, so there is an incentive to keep the tax on two fronts (bigger tips, and GST sharing).
The GST sharing alone might be more lucrative than an additional 10 patrons per day because of no tax.
Matt, can you speak to this?
I think you are confusing the pst commission with gst. AFAIK we don’t keep any gst. We don’t pay gst on anything mind you, but we do pay pst as we are an end user on many items.
It will be a little extra work for us at the restaurant since we can remove gst as a global command on various categories and just leave the “liquor” category on.
The grocery store will be a huge hassle, twice.
I have heard some retailers who are worried about a super slow December 1-13 and then a mad rush (on top of the usual mad rush) the next week. Stressful for some at what is already a stressful time.
There have been a few articles about what the hst collecting provinces will do to be made whole. Sounds like those provinces were totally blindsided by this.
I expect information from the bcrfa and cfib will be the most helpful as it was during Covid, as government communication is non existent.
If only there was some way to contact every business with a gst number, if only some government agency had such information at their disposal.