I mentioned this on a post a while ago. The 6% GST reduction kicks in today. This makes things a little more fun at the Box Office. We had to drop our price to $4.24. Now I get to hand pennies to people who will look at me strangely.
The reason is an interplay between federal and provincial taxes. If our ticket price minus Federal GST price goes over $4.00 a 10% Provincial Entertainment tax kicks in. $4.25 minus 6% is $4.01 hence we had to drop the price a penny to stay at $4.00.
I'm curious to see if anyone asks why we didn't drop a full 1% which would would have been about 4 cents. Actually we have needed a price increase for a while but were stuck at $4.25 because the extra tax would kick in if we went any higher. In the last couple years minimum wage has gone up over $1.00 an hour. To be fair I also raised the wages of those who made more than minimum. $1.00 an hour adds up to about an extra $12.00 a night cost for Western Film, it doesn't sound like much but it really adds up over the course of the year.
We'll be making 2 cents more per ticket , think that'll put a dent in it?
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