Wine Prices Raised by Alberta Government ⇥ cbc.ca

Colleen Underwood, CBC News:

The province says the flat rate for wine is going up another 15 cents per 750 ml bottle.

And it’s creating a new ad valorem, or “value added” fee, that will go up as the price of wine goes up, on top of the flat fee.

For example, according to the province, a $25 750 ml bottle of wine will cost another 20 to 40 cents, but a $50 750 ml bottle of wine will cost anywhere from $2.80 to $3.25 more.

This was announced to retailers with basically no warning. The province is using the wholesale per-litre price to assess this additional levy, meaning a standard 750 mL bottle of wine costing over $11.25 from a distributor is considered “high value”. Based on the wholesale prices I have seen from one importer, that would include the vast majority of wine from our neighbours in British Columbia, at a time when they need support after last year’s cold snap.

This is not my usual beat here, but I wanted to highlight some local lies, emphasis mine:

“Changes to the liquor markup system were undertaken with the objective of minimizing the impact to Alberta consumers and support social responsibility as they ensure products with a higher content of alcohol are subject to higher markup rates,” said Brandon Aboultaif, press secretary to the Service Albert and Red Tape Reduction Minister, Dale Nally.

This is nonsense. The markup rate for spirits with 22–60% alcohol by volume, which comprises virtually all “hard” liquor on store shelves, remains identical for major producers and, for qualifying “small manufacturers”, has been reduced (PDF) compared to the previous rates (PDF). The government, according to Underwood, says this wine-specific tax is intended to “address industry concerns, improve equity within the system, and support the growth of Alberta’s liquor manufacturing industry”. Alberta does not have a wine industry; it does, however, make a lot of beer and spirits. What this sounds like, in part, is that wine drinkers are seen as snooty cosmopolitain types, not like good old-fashioned beer and whisky drinkers.

I have little problem in principle with taxing my vices or, say, increasing other taxes to pay for stuff. That is understandable. But I do not appreciate being lied to.