The Ontario government has announced in its Provincial budget that tax collection procedures will be harmonised for imported and domestic beer when sold through the Liquor Control Board of Ontario (LCBO), the state-controlled alcohol retail monopoly – a move applauded by the region’s brewers.
“Ontario’s brewers applaud Finance Minister Ecker and The Honourable Tim Hudak, Minister of Consumer and Business Services, for implementing a fairer and more efficient tax collection system,” said Jeff Newton, president and CEO of the Brewers of Canada. “This government clearly understands the impact tax policy decisions have on future investment and jobs,” he continued.
Prior to this change the provincial government pre-collected domestic beer taxes at the brewery before the beer was shipped for sale at the LCBO. In contrast, the same provincial taxes on imported beer were collected by the LCBO in the form of a commercial mark-up. This difference resulted in imported beer appearing more profitable to the LCBO than domestic beer, Canada’s domestic brewers claimed.
“The Beer industry welcomes the government’s decision to address this inequity in tax collection. Creating a level playing field for the domestic industry will drive opportunities for sales growth at the LCBO while enhancing investment and job creation amongst Ontario’s brewers,” said Newton.
The Brewers of Canada is the national trade association for the brewing industry in Canada. Operating continuously since 1943, the association represents 25 domestic brewers across the country accounting for 99 per cent of all beer brewed in Canada. The Brewers of Canada represents the beer industry on a wide range of public policy, regulatory affairs, community interest and public image fronts.
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