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

Columbia Basin Trust offering business accelerator program

Trust seeking motivated companies for customized support and mentorship program

Trail military exercises provide crucial training

Exercise Sapper Crucible: ‘The nuts and bolts of what a soldier is’

VIDEO: SPCA ushers in new era with Castlegar facility

$2.69-million project had ribbon cutting on Friday

Thrums, Riondel, and Slocan, revisited

Place Names: Scottish author delighted by Thrums name origin

Last stand for Silver City summer

Fall officially arrives in Trail at 6:54 p.m. on Saturday

Conservation officer frees B.C. deer from flotation gear mishap

BC Conservation Officer Service is reminding residents to keep backyards clear of entanglements

Lions earn stunning 35-32 OT win over Ticats

Epic comeback lifts B.C. past Hamilton in CFL thriller

Czarnik nets 3 as Flames dump Canucks 5-2

Calgary picks up exhibition win over Vancouver

Ottawa to name new ambassador for women, peace and security, Freeland says

Chrystia Freeland also confirmed Canada would spend about $25 million to fund number of initiatives

‘A little bright spot:’ Ottawa residents rescue dog trapped beneath rubble

Freelance journalist says rescue of a dog trapped under rubble was happy ending amid chaos in Ottawa

B.C. deaf community wants different sign languages on federal accessibility act

Advocates also want Indigenous Sign Language to be recognized on the Indigenous Language Act

VIDEO: B.C.-born firefighter remembered by MP in emotional speech

Family asks first responders to look after one another in wake of suicide, growing concerns of PTSD

Airline has ‘close call’ with drone while en route to B.C. airport

Jazz Aviation reported the drone sighting near Vancouver to the RCMP and Transport Canada

Tragic accident claims life of B.C. toddler

Fundraising effort has been created to help mom and family

Most Read