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What you need to know about Alberta's new wine tax

edmontonjournal
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Alberta ’s upcoming wine tax changes could be devastating for small producers, warns Rick Barr , owner of Barr Estate Winery Inc. Small manufacturers qualify for reduced rates ranging from $ 0.74 to $ 5.35 per liter.

New tax on high-value wines, set to take effect Apr. 1 , introduces an additional ad valorem tax on wines that wholesale for $ 15 per litre.

This is on top of the existing flat tax of $ 3.08 per 750 millilitres bottle.

The government estimates that about 16 per cent of all wines sold in Alberta will be affected.

The new ad valorem markup is designed to “help to capture more of the value from higher-priced products” Drinkle and Barr dispute the government’s characterization of a $ 25 bottle of wine as “high-value” Barr and Drinkle say the idea is “absolutely fatuous”.