FOR IMMEDIATE RELEASE April 4, 2012 Province balances budget - serves up promise to decrease HST HALIFAX With todays

s budget, the Nova Scotia government promises to balance its budget and deliver a HST decrease in 2014 and 2015. In its budget today, the Nova Scotia government will reduce spending and reduce the small business tax rate by half a percent to 3.0%. This is offset by a reduction in the small business tax threshold to $350,000, a 5.8% increase in fees and hidden income tax hikes through bracket creep. The government deserves credit for eliminating the deficit and cutting spending, says Luc Erjavec, CRFAs Atlantic Canada Vice President. That being said, government has to recognize our tax regime in Nova Scotia is amongst the highest in the country and is dampening economic activity and job creation. Our income and sales tax rates are amongst the highest in the country and every Nova Scotian got a tax hike today because Nova Scotia is one of only three provinces not to index its tax brackets. We believe the only way government can grow the economy and create jobs is by making the province a competitive place to do business. says Erjavec. The first step was balancing the budget, now government must reduce the overall tax burden and costs on businesses in this province. As Nova Scotias fourth-largest private-sector employer, the restaurant industry directly employs nearly 30,000 people at more than 1,900 establishments. Twenty-two per cent of Canadians were first employed by the restaurant industry, making it the number one source of first jobs. CRFA is one of Canadas largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canadas $63-billion foodservice industry employs more than one million people in communities across the country. -30Contact: Luc Erjavec, 902-209-0804 (cell) or lerjavec@crfa.ca; Prasanthi Vasanthakumar, Communications Specialist, 1-800-387-5649, ext. 4254 or pvasanthakumar@crfa.ca.