The Canadian Taxpayers Federation is backing a call to scrap the provincial sales tax on pre-prepared foods and non-alcoholic beverages, a move that would put money back in the pockets of families every time they shop.
“The fastest way for the government to make life more affordable is to make things cost less,” said Devin Drover, Atlantic Director and General Counsel for the Canadian Taxpayers Federation. “When a family grabs a rotisserie chicken on the way home from work, the government takes a cut. That’s a tax on people just trying to put supper on the table.
“Knocking the provincial tax off prepared groceries is something the government could do to deliver relief right away.”
Liberal Leader John Hogan brought the idea forward in a private member’s bill in the house of assembly last week, pointing to Manitoba as an example.
The Manitoba government is dropping its provincial sales tax on prepared meals, snacks and soft drinks at grocery and convenience stores starting July 1. The Manitoba government says this cut says will save an average family of four roughly $100 a year.
Most groceries are already tax-free. But the provincial government charges sales tax on prepared and ready-to-eat items, the exact foods working families and people buy. Taking the provincial portion off those purchases helps every household at the checkout.
“Families are getting squeezed at the checkout and the bill keeps climbing,” said Drover. “The provincial government can’t control the price of raw chicken, but it can stop taxing the cooked chicken next to it. This is a simple move that helps people right away and the government should take it.”
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