Restaurants enjoying extra business during tax break, worry about looming end
Restaurateurs in the Halifax area are singing praises for the two-month GST holiday that kicked off last month. The federal government’s decision to eliminate the federal sales tax on a variety of items, including restaurant meals, takeout, beer, wine, children’s toys, and books, has provided a much-needed boost to businesses in the region.
The initiative, which began on December 14 and will run until February 15, was implemented to support the industry and offer Canadians some relief during the holiday season and the early part of the new year. Andre Pratt, co-owner of Studio East Asian Gastropub on Agricola Street, shared his positive experience with the tax break, noting an increase in business on traditionally slower weekdays.
Pratt and his business partner relocated to a larger space on Agricola Street in 2024, and the GST holiday has been instrumental in helping them navigate the typically slow months of January, February, and March. He highlighted the financial savings for consumers, encouraging them to explore new dining options and support local establishments.
According to Restaurants Canada, Nova Scotia’s restaurant industry is projected to earn an additional $60 million during the two-month GST holiday. The organization estimates that a typical couple dining out can save $15 on a $100 bill, which they are likely to reinvest in additional purchases like drinks or desserts.
Janick Cormier, Atlantic vice-president at Restaurants Canada, emphasized the economic significance of dining out in Nova Scotia, generating billions in sales and supporting tens of thousands of jobs. The tax break offers much-needed relief from operational costs and inflation, providing a lifeline for struggling businesses in the sector.
Despite the positive impact of the GST holiday, concerns linger about the aftermath when the tax break concludes in mid-February. Joanne McCullough, owner of the Millstone Public House restaurants, noted a spike in business in December but remains cautious about the potential impact on consumer perception once the tax is reinstated.
McCullough expressed worries that customers may perceive a price increase once the tax break ends, even though the restaurant has no plans to adjust its prices. Restaurants Canada is advocating for the government to make the GST holiday permanent to support businesses still recovering from the COVID-19 pandemic.
McCullough welcomed the idea of a permanent tax break, emphasizing the positive impact it has on consumer experience and business operations. As the industry strives to regain momentum post-pandemic, a permanent GST holiday could serve as a crucial support mechanism for restaurants in Halifax and beyond.
