Just came across a very interesting news story about much talked about HST (Harmonized Sales tax) and how it’s going to effect BC restaurant industry. Check out the complete story at CBC News. Here is the sneak preview:

Many British Columbia restaurant owners plan staff cutbacks if the province carries through with its planned shift to a Harmonized Sales Tax, according to a recent survey.

The Canadian Restaurant and Food Services Association surveyed a few hundred of its 4,000 B.C. members and found two-thirds plan to cut staff and another six per cent said they’ll shut down if the HST is introduced, association president Garth Whyte said in a news release.

Premier Gordon Campbell and B.C. Finance Minister Colin Hansen announced July 23 that B.C.’s HST will combine the five per cent federal GST with the seven per cent provincial sales tax for a harmonized 12 per cent tax, starting in July 2010.

At that time, Campbell said the HST would boost the economy, but food industry leaders believe it will do the opposite.

“We’re going to have a seven per cent increase in taxes on the consumer when they come to restaurants – it’s going to really hurt us and it’s going to reduce consumer spending,” said Whyte.

The way the HST will be applied means the province’s consumers will pay extra tax on items such as restaurant meals, airline tickets, funerals and haircuts – all of which were previously exempt from the PST.

Hmmmm..I have a feeling that it will affect BC tourism a lot. Hopefully it won’t hurt a lot!