HST hike gets thumbs down from business owners

Last week's provincial NDP budget had business owners buzzing, with many expressing their displeasure with a two per cent harmonized sales tax hike and the impact it could have on consumer sales.

Although she hadn't canvassed all the business owners who belong to the Sackville Drive Business Association, the group's chairwoman Tara Hill said it would be safe to say no one is happy about a price increase.

She's concerned about how this latest hike, coupled with increases in the minimum wage, will affect the bottom line of many local businesses.

"As a business owner in the restaurant segment, many of my staff begin at minimum wage, but most of the workers, even the management, expect wage increases when the minimum is increased," said Hill, owner of several Subway restaurants.

She said minimum wage increases began "significantly" rising in 2009. Another wage hike is slated for this October. She said these increases have affected business, increasing her costs by more than 15 per cent.

Hill expects the additional two per cent Harmonized sales tax increase taking effect July 1 will further whittle away her bottom line.

Hill said it's frustrating trying to run a successful business while watching the bottom line dwindle each year due to many costs over which she has no control.

"It is even more discouraging when the public service sector continues to grow and little control appears to be in place to significantly decrease the cost of government," she said, adding that her comments are not necessarily those of the Sackville Drive Business Association.