ALBERTA WINE TAX DRIVES UP PRICES

ALBERTA WINE TAX DRIVES UP PRICES FOR CONSUMERS
AND BUSINESSES, UNDERMINES INTERPROVINCIAL TRADE

A coalition of industry associations representing Canadian wineries, restaurants, import agents, and Alberta retail and hospitality businesses are calling on the Government of Alberta to repeal its unfair and damaging ad valorem tax on wine. Implemented in 2025 without industry consultation, 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.

Administered as an ad valorem markup structure through the Alberta Gaming, Liquor and Cannabis Commission (AGLC), Alberta’s wine tax adds an escalating percentage-based markup on wine sold in Alberta on top of the flat-tax markup. Restaurants, retailers, agents, and wine producers all strongly oppose the introduction of ad valorem markup pricing to Alberta’s competitive flat-tax markup system.

The fees for the additional Alberta wine tax are 5% for wine valued between $15-20 per litre; 10% for wine valued between $20-25 per litre; and 15% for $25 per litre and above. All wines over $11.25/750ml bottle are impacted by the additional tax.

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. The policy also hurts Canadian wine producers’ ability to sell a wide variety of wines to Alberta consumers and contradicts the Alberta government’s stated affordability policy priorities.

The Coalition is calling on the Government of Alberta to repeal the wine tax and engage constructively with industry to find a solution that supports Alberta consumers and businesses, respects interprovincial agreements, and upholds the spirit of free trade within Canada.

A detailed backgrounder, including stakeholder statements and further context on the tax’s impacts, is available at the link below.

Backgrounder

The Coalition comprises representatives from Wine Growers Canada, Wine Growers British Columbia, Alberta Hospitality Association, Alberta Liquor Store Association, Import Vintners & Spirits Association and Restaurants Canada.

ABOUT WINE GROWERS BRITISH COLUMBIA

Since 1990, WGBC has played a pivotal role in taking BC’s wine industry from a vision to an internationally recognized niche region producing premium wines and providing exceptional wine tourism experiences. WGBC markets the wine and regions of BC; delivers quality trade, media and consumer tastings; and acts as the voice of BC’s wine industry by advocating to government on behalf of industry that contributes $3.75 billion in provincial economic growth annually.

WGBC represents all wineries in British Columbia to grow the premium market share for the Wines of British Columbia, while driving awareness of our world-class wines and tourism product – as of 2019 drawing 1,191,500 visitors with $609 million in tourism and tourism employment related economic impact on an annual basis. For more information about Wine Growers BC programs and services, please visit  WineBC.com/Industry.

For details on the Wines of British Columbia, go to WineBC.com, follow @WinesofBC on Instagram, Facebook, TikTok and Pinterest. Industry trade news @WineGrowersBC.

Leave a Comment