FOR IMMEDIATE RELEASE November 21, 2012 Restaurants oppose retroactive tax increase announced in Quebec budget MONTREAL

The Canadian Restaurant and Foodservices Association (CRFA) is giving yesterdays budget a failing grade for increasing taxes on beverage alcohol and requiring business owners to pay the additional taxes on bottles they have already purchased. "The increase in the special tax on alcohol of 50 cents per litre for wine and spirits and 17 cents for beer will have a major impact on restaurants with alcohol permits, says Jean Lefebvre, CRFAs Vice President, Quebec. "With the Minister talking about the difficult state of the economy, it's a surprise the government would target our members in this way. The increases will apply to all bottles already in stock when the budget was tabled. Restaurants will have to do an inventory of their unopened bottles as of 3 a.m. Nov. 21, declare on Dec. 22 the bottles of beer, wine and spirits they had in stock on Nov. 21 and pay the special tax increases on these bottles. The tax adds 37.5 cents a 750 ml bottle of wine; 57 cents to a 1.14 litre bottle of spirits; and 17 cents to a litre of beer (5.8 cents a bottle). " The retroactive nature of this tax is unacceptable for an economic sector that employs over 200,000 people in all regions of Qubec, said Lefebvre. Are we partners in the economic growth of Quebec, or only a cash cow for the government when it wants to balance its budget? CRFA is one of Canadas largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canadas $65-billion restaurant industry employs more than 1.1 million people in communities across the country. CRFA has over 5,000 members in Quebec through its subsidiary, the Council of Chain Restaurants Quebec (CCRQ), as well as independent restaurant members. -30CONTACT: Jean Lefebvre, 514-448-2154 or jlefebvre@crfa.ca; Prasanthi Vasanthakumar, CRFA Communications, 1-800-387-5649, ext. 4254 or pvasanthakumar@crfa.ca.