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2mo ago

Alberta Ends Value-Based Wine Markup, Returns to Flat Per-Litre Fee April 1

Industry groups say the rollback restores transparency by removing a tax-on-a-tax on higher-priced bottles.

Shelves of wine. Taken on Sunday, Nov. 28, 2021 at the Highlands Liquor Store in Edmonton.
Bottles of British Columbia wine are displayed at a liquor store in Cremona, Alta., on Feb. 7, 2018. THE CANADIAN PRESS/Jeff McIntosh

Overview

  • The ad valorem levy will be removed on April 1, with the base wine markup rising by $0.58 to $4.69 per litre from $4.11.
  • Service Alberta Minister Dale Nally said the percentage-based charge had applied to about 16% of wines sold in the province.
  • A coalition including Wine Growers Canada, Wine Growers BC, Restaurants Canada, the Alberta Hospitality Association, the Alberta Liquor Store Association and importers urged the change, arguing the levy reduced transparency and raised prices.
  • Industry accounts report restaurants absorbed significant added costs, demand for Canadian wine fell under a threshold that captured bottles above about $11.25 wholesale, and some B.C. producers curtailed Alberta sales.
  • Supporters praise the shift to a simple volume-based system and urge other provinces to adopt clearer markups and ease interprovincial trade barriers.