Foodservice industry applauds federal tax proposals

    OTTAWA, Oct. 18 /CNW/ - This week's Speech from the Throne addresses a
number of issues of importance to Canada's foodservice industry, including a
further cut to the unfair GST, which taxes the same products differently,
depending on where they are purchased.
    The Canadian Restaurant and Foodservices Association (CRFA), representing
34,000 restaurant, bar, catering and other foodservice operators, welcomes
broad-based tax cuts included in the Throne Speech in addition to another
one-point cut to the GST.
    "An acceleration of the promised one-point reduction in the GST is
particularly welcome, as it mitigates the effects of this flawed tax," says
Joyce Reynolds, CRFA Senior Vice President, Government Affairs. "It makes no
sense for consumers to pay GST on a carton of milk at a restaurant when the
same product is tax-free at a grocery store."
    CRFA has called on the federal government to implement a multi-year tax
reduction plan that includes corporate tax cuts, as well as personal income
tax relief through an increase in the personal tax exemption to $15,000 over
the next five years.
    CRFA also supports the following measures that were contained in the
Throne Speech:

      -  Investment in the Working Income Tax Benefit to encourage
         participation in the labour force.
      -  Changes to how the employment insurance account is managed. This
         program generates billion-dollar surpluses that are diverted to
         other spending. The surplus must be returned to employees and
         employers through premium rate reductions.
      -  Free trade among provinces to lower costs of doing business, improve
         consumer choice, and increase Canada's competitiveness.

    CRFA urges the government to move toward liberalized trade
internationally as well as domestically, so that Canadian farmers may
capitalize on their strengths and compete in the global marketplace.
    "There is a fundamental disconnect between the idea of domestic trade
liberalization and Canada's protectionist stance at the World Trade
Organization," says Ron Reaman, CRFA's Vice President, Federal. "The
government's support for supply management flies in the face of free trade
among provinces, because marketing boards are provincial bodies and by their
very nature have created a labyrinth of technical barriers to interprovincial
    Canada's $53-billion foodservice industry employs more than one million
Canadians in communities across the country.

For further information:

For further information: Joyce Reynolds, (416) 649-4219; Ron Reaman,
(416) 649-4242; Jill Holroyd, CRFA Communications, (416) 649-4217

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