B.C. restaurant group seeks HST delay

An organization of B.C. restaurant owners says it's ready to give up its all-out opposition to the HST, but still plans to challenge the provincial government on the timing of the harmonized sales tax.

The B.C. Restaurant and Foodservices Association plans to present the government with recommendations to ease the financial burden for consumers and industry, association CEO Ian Tostenson told CBC News.

A delay in introducing the harmonized sales tax is one idea, Tostenson said.

"I think we'd all like to see it implemented three or four years down the road when the economy's stronger," Tostenson said.

B.C.'s proposed HST would combine the five per cent federal Goods and Services Tax with the seven-per-cent Provincial Sales Tax starting in July, 2010. The 12 per cent HST would be applied to many items – such as restaurant meals – that now are subject only to the GST.

"This is an industry that has had a real difficult time in this recession and if we're coming out of the recession a little bit by next July and then to add a seven per cent price increase, [our members] just feel it's too much," Tostenson said.

Could seek liquor tax reduction

Another industry strategy could be to seek a reduction in provincial liquor tax for restaurants, Tostenson said.

However, that would not work for the many foodservice operators who don't serve alcoholic beverages.

"For any small business or mom-and-pop shop, it means nothing at all," said Dan Creswell, who runs a take-out restaurant in Kelowna.

The association plans to pitch its recommendations to the B.C. government as soon as possible, Tostenson said.

The BCRFA represents more than 3,000 restaurant and foodservice businesses across the province, according to its website.