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

German-born British Columbian warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Highest earning staff at Fraser-Cascade School District made public

Also board looks into seat belts on school buses, Marv Cope gets road in his memory

Agassiz teacher’s Amazing Race takes students on Canada-wide adventure

AESS students say they had the experience of a life time

WATCH: Brother of missing Hope woman makes emotional appeal for more media attention

Next search for Shawnee Inyallie Nov. 18 along Highway 1 towards Boston Bar

Gas price drop expected to hit Fraser Valley today

Analyst says to take advantage, warns slight increase may follow

Saving salmon: B.C. business man believes hatcheries can help bring back the fish

Tony Allard worked with a central coast First Nation to enhance salmon stocks

High-end B.C. house prices dropping, but no relief at lower levels

But experts say home ownership remains out of reach for many for middle- and lower-income families

Worker killed in collision at B.C. coal mine

Vehicle collision occurred at approximately 10:45 a.m. this morning

UPDATE: Hells Angels on scene after body found in Maple Ridge

Body was discovered beneath the Golden Ears Bridge

Mountie left with ‘significant’ injuries after driver attempts to flee traffic stop

Richmond RCMP are looking for a dark coloured Mercedes Benz

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Victoria spent $30,000 to remove John A. Macdonald statue

Contentious decision sparked controversy, apology from mayor

Most Read