The city of Winnipeg is increasing the cost of restaurant licences, labelling their businesses 'high risk,' because they deal with raw food.
Restaurant owners say the licensing fee went up 70 percent this year.
The changes are part of the new "Doing Business in Winnipeg" bylaw, which came into effect June 1st.
Julia's Pizza owner Vic Polsom says it is a city tax grab. He worries labelling businesses 'high risk' will scare away customers, and cut profits.
Sandy Dolye, the owner of Blondies agrees. She's been in business 18 years and says the city doesn't make it easy for owners to keep their doors open.
"Last year, I was not high risk and everything was fine," she told CTV News. "Then this year I am high risk and I have to pay from $300 up to $550."
The city says that is the cost of doing that kind of business.
Peter Parys speaking for the city says restaurants dealing with raw food require more inspections for customer safety.
"Those revenues are used to pay for the services that are required to do those inspections," he said.
But it's not just restaurants being hit with major increases, CTV News spoke with the owner of a vacuum store in Winnipeg who says his licence fees went up more than 300 percent this year. He was paying $148; he's now paying $450.
Parys couldn't explain why license fees would increase at a vacuum store, but he did say some owners won't have to pay at all.
There are now 53 types of businesses that used to be regulated by the city that don't require licenses anymore.
But that's little comfort to Vic Polsom. He believes the city has taken the burden off its own shoulders and placed it on the backs of small business owners, some who are already barely scraping by.
With a report from CTV's Caroline Barghout.
