Tories pledge to cut PST from restaurant meal bills

Hey there, time traveller!
This article was published 15/09/2023 (747 days ago), so information in it may no longer be current.

A burger with a side of fries… hold the PST?

On Friday, the Progressive Conservatives promised to axe the seven per cent provincial sales tax on food purchased from Manitoba restaurants, if re-elected Oct. 3.

“A nice evening out will be cheaper and so will the delivery at home,” Red River North candidate Jeff Wharton told reporters in the afternoon rain outside a Dairy Queen franchise in West St. Paul.

The PST portion should be 86’d for two reasons, Wharton argued: to give Manitobans a break with the rising cost of living and drive hungry customers to struggling diners.

“This will help make our province even more competitive.”

The Tory minister didn’t provide a timeline on the tax cut when asked Friday, but committed to getting the job done. “We want to get Manitobans the savings they need right now in these very tough times.”

The proposed rollback would cost the provincial treasury about $25 million per year.

Alcoholic beverages would continue to be taxed at restaurants, Wharton added.

He was joined at the campaign announcement by Selkirk candidate Richard Perchotte, Steinbach candidate Kelvin Goertzen, and DQ franchise owner Sunil Bhatara.

“The restaurant industry has been struggling for the last few years,” said Bhatara. “It is going to be a big help.”

Bhatara also applauded the PCs’ election promise earlier this week to phase out the payroll tax over eight years.

During the second week of the campaign, the Tories focused their attention on economic development, promising to significantly increase Manitoba’s population, establish a skills training fund, and offer cash incentives for the film, aquaculture, transportation and agriculture sectors.

Manitoba Restaurant & Foodservices Association executive director Shaun Jeffrey said Friday’s pledge is recognition the industry and Manitobans are suffering.

Attracting customers for lunch and on weeknights has been a challenge, he added.

“Manitobans should deserve an incentive for going out and supporting restaurants again,” Jeffrey said. “You’re going to grow the economy with additional revenue in our businesses and it’s a small price to pay to get some restaurants back up to where they should be.”

Eliminating the PST was not among the specific business incentives advocated for by the association, though it would reduce administrative burdens, he said.

Phasing out the payroll tax, however, would be “monumental” for the sector.

“It’s a step in the right direction and I don’t want to diminish this in any way. It’s definitely a very good, well-round approach in trying to grow business,” Jeffrey said.

Ahead of dinner service Friday, Preservation Hall co-owner and general manager Melanie Foucault said the commitment gave her some food for thought.

It may mean customers will drop by more frequently, Foucault said — and she would be glad not to worry about remitting the tax.

“The cost of everything is going up and that has definitely affected people’s dining-out behaviour,” Foucault said by phone from her Polo Park-area eatery. “Any savings that the guests could have from this, would be beneficial.”

However, taxes exist for a reason, she said, and questioned the cost of the savings. “Without that revenue coming in, there are things that then go on the chopping block.”

NDP spokesperson Rebecca Widdicombe said Manitobans’ top priority is making health care better and that’s where the NDP is putting its focus.

“If (PC Leader) Heather Stefanson really believed this would help Manitobans, she would have included it in her (2023) budget,” Widdicombe said.

Also Friday, the Tories promised to spend $20 million on fish farming in the Interlake region. Goertzen said the aquaculture sector can count on the PCs for flow cash to the industry, if they win the election.

According to a release, the $20 million will increase international fish exports and strengthen the overall industry by leveraging cost-sharing opportunities with the federal government.

Winnipeg Free Press | Newsletter

Jen Zoratti | Next

Wednesdays

What's next in arts, life and pop culture.

Sign up for Jen Zoratti | Next

Sign Up

I agree to the Terms and Conditions, Cookie and Privacy Policies, and CASL agreement.

“Industries are booming, companies are growing, new jobs are being created, and we see much more economic activity on the horizon,” Goertzen said.

He was joined by Lakeside candidate Trevor King at Sapphire Springs in the Rural Municipality of Rockwood to make the announcement Friday morning.

Sapphire Springs is building a $200-million Arctic char fish farm. It is expected to create up to 350 new jobs and generate more than $300 million in economic activity, the PCs said.

“Every time we can attract and grow new local industries to create jobs, we’re strengthening our communities,” King said in the release.

danielle.dasilva@freepress.mb.ca