March 24, 2010, Winnipeg – After surviving a difficult year in 2009, the Manitoba government has left restaurant operators with little to look forward to in 2010, says the Canadian Restaurant and Foodservices Association (CRFA).
“Manitoba Moves Forward,” the 2010-2011 budget document, boasts $14 million in new tax savings for business, including the elimination of the Small Business Tax later this year. Unfortunately, any tax reductions for business owners are going to be short-lived.
“Any tax reduction is good news for business operators in Manitoba. But instead of rejoicing, foodservice operators are bracing for the impact of yet another minimum wage increase,” says Courtney Hirota, Manitoba-Saskatchewan vice president with the CRFA.
“We have seen a disturbing pattern emerge in Manitoba over the past few years: Any tax gains that operators make are quickly washed out by increases to labour costs.”
In 2009, two increases to the minimum wage cost Manitoba foodservice operators approximately $16 million in additional labour costs. The anticipated 2010 increase will quickly eliminate any tax relief announced in today’s budget.
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