QUEBEC, June 4, 2014 /CNW/ - Bar and restaurant owners are applauding
today's budget announcement that standardizes the specific tax on
alcohol as of Aug. 1, 2014. Restaurants Canada (formerly the Canadian
Restaurant and Foodservices Association) has long been calling for
equal treatment when it comes to this tax.
Currently the specific tax on beer, wine and spirits varies with where
the product is consumed: at home via the convenience store, grocery or
SAQ; or in restaurants and bars. For beer at home, the specific tax is
50 cents a litre, compared to 82 cents a litre if consumed at a
restaurant or bar. For wine and spirits at home, the specific tax is
$1.12 a litre, compared to $2.27 at a restaurant or bar.
The new, standardized tax is 63 cents a litre for beer and $1.40 a litre
for wine and spirits, creating a level playing field for all.
"Restaurants Canada is very happy with this long-awaited decision,
especially after five months of work on the committee to review alcohol
practices," said Jean Lefebvre, the association's Quebec Vice
President. "Grocers and convenience stores have become in recent years
competitors to restaurants, with ready-to-eat meals and their own lines
of wines. It was more than time that taxes related to beer, wine and
spirits were the same for all in the market."
The budget also promises to create a committee to review government
programs and another to look into the fiscal situation of citizens as
well as companies. For Restaurants Canada, reviewing the fiscal
situation will enable an analysis of payroll taxes, which are 30%
higher for restaurant operators in Quebec, compared to the rest of
Canada. The association is also pleased that the government will follow
the recommendations of the group on red tape, which should help small
The first part of the budget is focused on controlling finances and
spending, but there is also a focus on helping the economy. "Our
industry wants to take part in such an effort. We are a major economic
partner with revenues exceeding $10 billion a year and more than
200,000 jobs in communities across Quebec," said Lefebvre.
Restaurants Canada is a national association comprising 30,000
businesses in every segment of the foodservice industry, including
restaurants, bars, caterers, institutions and their suppliers. Through
advocacy, research, and member programs and services, Restaurants
Canada is dedicated to helping its members in every community grow and
Canada's restaurant industry directly employs more than 1.1 million
Canadians, contributes $68 billion a year to the Canadian economy, and
serves more than 18 million customers every day.
SOURCE: Restaurants Canada
For further information:
Jean Lefebvre, 514-777-8438 or firstname.lastname@example.org; Prasanthi Vasanthakumar, 416-649-4254 or email@example.com