Photo courtesy of Wines of British Columbia

It sounded like good news, but is it really? The federal government recently announced a two-year extension to the excise duty relief that was set to expire this April. Certainly, the news could have been a lot worse.

But critics insist the tax—which increases year after year automatically—is unfair by its very nature. And with all the pressures of tariffs and soaring fuel costs, it is just one more burden for producers to bear.

Here’s the background: In 2017 the federal government launched an alcohol escalator tax program that automatically increases excise taxes on beer, wine and spirits every year to help keep pace with inflation.

In 2023, with the industry reeling from COVID and inflation skyrocketing, the government capped the increase at two per cent. They extended that cap again in April 2024, when the increase was likely to be a historically high 4.7 per cent, and again in April 2026, for two more years. Even so, the excise tax on alcoholic products has risen a whopping 18 per cent since 2017.

The Canadian Chamber of Commerce has called it “a bitter pill to swallow,” noting especially its impact on the hospitality industry, which was hard hit by the pandemic. They and other critics are calling for an open debate in the House of Commons.

Another issue that is exercising wine producers especially is interprovincial shipping.

Everyone seems to be for it and yet we still only have four provinces that allow it (British Columbia, Manitoba, Saskatchewan and Nova Scotia). In March, that expanded somewhat with a new agreement that allows residents in Ontario and Nova Scotia to buy directly from each other. Alberta and B.C. have also reached memorandum of understanding that allows for DTC sales. A little frustratingly, though, Ontario and B.C. recently reached an interprovincial trade that excluded alcohol.

Meanwhile, Dan Albas, Member of Parliament for Okanagan Lake West–South Kelowna, has introduced Bill C-262, which aims to amend the Canada Post Act to force a national standard for interprovincial alcohol shipments. It’s getting plenty of support, including petition e-7258, initiated by Ron Kubek, owner of Lightning Rock Winery in Summerland. If this seems like something you’d support, you can sign it at petitions.ourcommons.ca.

Vitis Magazine

Vitis is is an indispensable seasonal guide for vintners, sommeliers and weekend imbibers alike that is dedicated to British Columbia’s rapidly evolving wine culture.