The restaurant industry in British Columbia is launching an online campaign against the harmonized sales tax, saying the extra seven per cent added to restaurant bills will hurt the industry - and customers.

The tax is one step closer to becoming a reality in B.C. after a vote was overwhelmingly passed in the House of Commons Wednesday.

"It's going to bite into our customers wallets, it's going to bite into staff paycheques and gratuities and impact the livelihoods of our members," said Mark von Schellwitz of the Canadian Restaurant and Foodservices Association.

George Dikeakos of Sophie's Caf� in Kitsilano agrees, saying customers might not spend as much as they would normally.

"I think everyone's down a bit right now so just to be kicked again just witha new tax may make it a little worse."

The Canadian Restaurant and Foodservices Association (CRFA) has launched a new website, www.NoMealTax.ca, asking for a provincial HST exemption for restaurant meals. The site also features an online petition asking foodies to rally against the new tax.

Its financial analysis indicates the added tax would cause a 7.5 per cent drop in overall restaurant sales -- equaling a $750 million loss in the province.

The CFRA said this loss, which would work out to about $50,000 per restaurant, would likely be made up by cutting staff hours.

Von Schellwitz insists it's not too late for the province to step in and help the industry.

"This is just legislation that's passed. What can change at any time is that the federal and provincial governments can amend agreement they've got in place."

But an exemption may not be in the cards. Last week, B.C. Finance Minister Colin Hansen said the government simply can't provide it.

"Right from day one I made it clear exemptions are not something we have the ability to do."

At the moment, only certain goods will be exempt from the seven percent portion of the HST, including fuel and children's clothing.

Fallout

Former B.C. premier Bill Vander Zalm spoke out against two B.C. MPs after yesterday's decision, calling Conservative Dona Cadman and Liberal Keith Martin cowards for missing the HST vote in parliament.

Only the NDP opposed unifying federal and provincial sales taxes, and Cadman and Martin were not in the house when the vote was held.

According to Vander Zalm, a constitutional challenge may be the next step in the battle against the tax that is expected to take effect in July.

It is expected B.C. will introduce its own legislation early in the New Year.

With a report from CTV British Columbia's Maria Weisgarber and files from The Canadian Press