At least one winery owner is considering selling directly to Albertans without collecting that province's wine taxes
The Alberta government’s decision to substantially increase its tax on all wine it sells is riling B.C. winemakers, who are preparing for a showdown.
BCLDB mark-ups on wine start at 89 per cent on the first $11.75 per litre that the producer charges as a base price and then falls to a 27-per-cent mark-up on the remainder of wine’s base price. The move could ratchet up tensions between the Alberta and B.C. governments, perhaps confounding efforts between provinces to work together in response to U.S. President Donald Trump’s tariff war on Canada.
It also last year reached an agreement solely with the B.C. government that allows B.C. wineries to register with the AGLC to be approved to directly sell and ship wine to Alberta residents if the wineries send the approximately $3 levy per bottle to the AGLC.Starting April 1, the Alberta government will slightly raise its flat fee and separately introduce a new tax based on the value of the wine – something called an ad valorem tax.
He has done this for years – even before the Alberta and B.C. governments reached their deal last year to formalize a system where B.C. wineries register with the AGLC and agree to charge Alberta customers the $3 fee per bottle and then remit that fee to the AGLC. Kubek said he believes a legal precedent allowing him to do this stems from something the federal government did in 2019.
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