April 6, 2011, Halifax – Faced with a significant deficit, the Nova Scotia government has introduced a budget that does little to help the restaurant industry grow and prosper, according to the Canadian Restaurant and Foodservices Association (CRFA).
“The government is beginning to get a handle on spending, but is still relying on new revenue from the HST and high tax rates to get back to balance,” says Luc Erjavec, Atlantic Canada vice-president for the CRFA. “While a slight reduction in the small business tax rate and a one-time increase in the basic personal tax exemption are good, small steps, they pale in comparison to the impact of the HST increase, fee hikes and growing labour costs.” “Nova Scotia’s tax climate continues to be one of the worst in the country, and this budget does nothing to help make our businesses more competitive,” adds Erjavec.
According to the CRFA, Nova Scotia’s restaurant industry is one of the province’s largest employers, with more than 30,000 employees. Of those, more than 12,000 are young people between the ages of 15 and 24; this accounts for 18 per cent of total youth employment.
Nova Scotia’s restaurant industry generates total sales of $1.6 billion, or 4.4 per cent of the province’s GDP, the CRFA reports.
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