Transparency often lacking around surprising surcharges
Popular Hermann’s Jazz Club hits the right notes when the first words on their website prominently declare ‘Our prices include all tax and fees.’
But that’s not always the case, a major concern considering household budgets are under considerable pressure these days.
Customers are increasingly left to sort out the confusion around fees and surcharges for restaurants, accommodation, postage, transportation and credit card transactions.
One of the latest goes into effect Feb. 1.For the next seven years booking a room in a Vancouver hotel, Airbnb or vacation rental by owner (VRBO) will come with an additional 2.5 per cent tax as the city seeks to raise revenue to host the 2026 FIFA World Cup.
A year ago 10 Acres Farm and Restaurant Group started adding a 2 per cent charge for food and beverage on every bill. Calling it the EHB (Employee Health Benefits), it was enacted to cover government-imposed health and employee benefits.
Down the road at Belleville’s Diner, they are charging nine per cent on the food and beverages bill for what they call the ‘BCH’ to cover the new provincial employer health tax, and now paid sick and injury leave.
At Big Wheel Burger the restaurant automatically adds a surcharge in the form of a donation to the cost of your meal. Compulsory donations of 1.5 per cent are matched by the company and go to five various poverty related charities.
Fees must be disclosed to customers before they order and be posted on menus, according to the province.
As for hotel bills, not everyone reviews them carefully.
There’s a PST of 8%, GST of 5%, plus a Municipal and Regional District Tax (MRDT) of 3% will be assessed. Depending on the hotel, you may be assessed an additional Destination Marketing Fee (DMF) of 1%.
Fuel surcharges are all the rage these days as well.
Sustained high fuel prices prompted BC Ferries to increase its current fuel surcharge by 1.5 per cent starting November 1. That’s only the latest increase.
As a result, the cost for an adult just increased 70 cents and $3.15 for a vehicle and driver on the Metro Vancouver – Vancouver Island routes, and an average of 40 cents for an adult and $1.70 for a vehicle and driver on some inter-island routes. At least BC Ferries issues a fuel rebate to customers as part of fares when prices are lower.
The last time we looked Canada Post is adding a stunning 30.5 per cent fuel surcharge for domestic services and parcels.
Starting October 6, 2022, businesses were able to charge an additional fee at the point of sale if a customer wishes to pay by credit card. This was brought in to offset the increasing costs of credit card transactions shouldered by business.
So look for credit card surcharges to start popping up on transactions this year. Signs about the surcharge must be displayed, and the charge must be separately itemized on the receipt.
Double-check your bills carefully and question what you do not understand.