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

Is Terrace prepared for a rail disaster?

Council asked to review surge in dangerous goods movement: “I live in the blast zone,” says resident

DoK delays third reading of TSW land rezoning

Decision on hold until another public hearing is held

Woman killed in head-on crash near Vanderhoof

RCMP say driver crossed the centre line and hit a loaded fuel tanker truck

RCMP to review actions at Wet’suwet’en pipeline protest camps

Senior Mountie says he hopes protests will be peaceful following deal with hereditary chiefs

Kitimat home assessment values soar

Values increase based on LNG Canada development

First Nation supporters march to Horgan’s MLA office

Dozens marched across the Greater Victoria community of Langford to support the Wet’suwet’en people

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

Canucks rookie Elias Pettersson ‘feeling good’ after knee injury

Pettersson said he wasn’t feeling any pain during Wednesday’s skate

Kentucky canoe outfit borrows photo of Trudeau family to market business

They are in a red canoe, all clad in life jackets, and Sophie Gregoire Trudeau and Ella-Grace are waving

Ratfish generates social media buzz on Vancouver Island

Boneless, glowing creature a common bycatch, but it usually stays in deep waters – fish expert

UPDATE: Liberal bows out of byelection after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

Daredevil changes game plan to jump broken White Rock pier

Brooke Colby tells council daredevil event would help boost waterfront business

B.C. storm totals $37M in insured damages

The December storm wreaked havoc on B.C.’s south coast

Most Read