Preliminary numbers show that people are wining and dining in greater numbers than they otherwise would have were it not for the two-month tax holiday.
Richard Alexander, executive VP Government Relations and Public Affairs with Restaurants Canada, says it was just the opposite when the GST came in – eating out sharply declined. Conversely, when taxes come off, as they have until February 15, people spend.
He says according to the data available, the tax holiday is projected to result in an extra $1.5-billion being spent at restaurants in Canada, and an additional $27-million in Newfoundland and Labrador.
