After being implemented nearly a year ago, a group is now calling on the Government of Alberta to revoke its ad valorem tax that has been hurting businesses and consumers, driving down sales of wine.
On Wednesday, Jan. 14, a coalition of industry associates representing Canadian wineries, restaurants, import agents and Alberta retail released a statement, saying the tax is increasing prices for everyone.
“Alberta’s wine tax is driving up prices for Alberta consumers and small businesses, hurting Canadian wineries, and directly contradicting federal and provincial efforts to reduce interprovincial trade barriers,” stated the release.
“The new tax comes at a bad time when businesses are already having to absorb significant operating cost increases and as Albertans struggle with affordability.”
Vice president and general manager of Summerland’s Dirty Laundry Winery Paul Sawler said on Wednesday that he feels bad for Albertan customers who visited and loved their wine.
“I feel for our Albertan customers that fell in love with our, and other B.C. winery products to now face this unnecessary added cost,” he said.“That’s deeply frustrating for consumers who want to support Canadian producers and are already facing challenges relating to rising cost of living.”
The tax markup is applied in addition to the flat-tax rate set by the government.
The fees for the additional Alberta wine tax are:
• five per cent for wine valued between $15-20 per litre
• 10 per cent for wine valued between $20-25 per litre
• 15 per cent for $25 per litre and above, all wines over $11.25/750ml bottle are impacted by the additional tax.
“At a time when the rest of Canada is working to open trade between provinces, Alberta’s new wine tax penalizes Canadian wine, raises prices for consumers, and undermines the progress governments have been working toward on internal free trade,” said Jeff Guignard, CEO and president of Wine Growers British Columbia.
The coalition said the markup contradicts Alberta government’s policy to make things more affordable.
In an appeal to the government, the businesses are imploring to drop the tax and create a solution that “supports Alberta consumers and businesses, respects interprovincial agreements, and upholds the spirit of free trade within Canada.”