B.C. corks luxury tax for premium wines

After protests from restaurants and wineries, Justice Minister Suzanne Anton scraps increase for bottles retailing for $20 or more

Wineries and restaurants pushed back on the plan to increase the tax rate on wines retailing for $20 a bottle or more.

The B.C. government has put a cork in its plan to charge a higher tax on higher-end wines.

“Since we released our wholesale pricing model in November, we’ve heard concerns from the industry about the pricing structure for wines over $20 a bottle,” Justice Minister Suzanne Anton said Friday. “We are reducing the mark-up for this category – levelling out the wholesale price for wines that would have been impacted.”

A major concern for wine stores and B.C. restaurants was the change to the province’s wholesale pricing formula for wine that ends the discount advantage for independent wine stores.

It meant little change or even cheaper prices for wines that now cost $15 and under. But the final retail price of pricier bottles was expected to rise sharply starting in April, in both private and government stores, and in restaurants.

B.C. Restaurant and Foodservice Association president Ian Tostenson said restaurants must pay retail prices and usually charge their patrons double, so the price of a premium bottle when having dinner out would have jumped 10 to 20 per cent.

The change to a single wholesale price for every product takes effect April 1, the same date B.C. is permitting private or government liquor sales in separated spaces inside grocery stores. Another change to allow only B.C. wines to be sold directly from grocery shelves has attracted a U.S. challenge under the North American Free Trade Agreement.

Currently the Liquor Distribution Branch, the government monopoly wholesaler, sells products to government stores at cost and sets a minimum price for all retailers. The wholesale price for private retail stores is 16 per cent less than the government retail price, rural agency stores pay 12 per cent less, and stores that sell only B.C. wine get a 30 per cent discount.

 

Just Posted

Wildfire near Genelle

Located about 5km west of Genelle at 1600 metres

Firesmart program has homeowners ‘thinking like an ember’

RDCK offering free home assessments to protect homes from wildfires

RDCK issues evacuation order to Deer Creek residents

Local state of emergency declared in the area because of Deer Creek fire

Delays on Highway 3 at Kootenay Pass

DriveBC reminding travellers the area is an active wildfire zone and warning of fallen debris.

Kootenay fires grow — more evacuation alerts

Syringa fire prompts evacuation alerts plus HWY 3 closure and U.S. fire crosses into B.C.

Social media, digital photography allow millennials to flock to birdwatching

More young people are flocking to birdwatching than ever, aided by social media, digital photography

Vehicle fire on the Coquihalla

Heavy congestion in north bound lanes

East Kootenay fire victim honoured

Bradley Patrick Tipper remembered as gentle-hearted and generous

Lightning blamed for most recent regional fires

Southeast Fire Centre says 90 per cent of the 342 fires recently reported are lightning-caused

Prime minister greeted by B.C. premier as cabinet retreat begins

PM Justin Trudeau and Premier John Horgan meet in advance of federal cabinet meetings in Nanaimo

Are your kids anxious about going back to school?

BC Children’s Hospital offers tips to help your children be mindful and reduce stress

New trial ordered for James Oler in B.C. child bride case

Meanwhile, appeal court dismisses Emily Blackmore’s appeal of guilty verdict

This trash heap in Vancouver could be yours for $3.9 million

Sitting atop 6,000 square feet, the home was built in 1912, later destroyed by fire

Team Canada’s next game postponed at Little League World Series

They’re back in action on Wednesday against Peurto Rico

Most Read