B.C. craft beer brewers frothing over Alberta tax hike
Local breweries frustrated with increased tax because of barriers for small businesses
Taxes on B.C. craft beer in Alberta will be increasing more than twelvefold this Friday, causing concern among B.C. brewers about their own sales out of province.
All beers brewed outside of Alberta will be taxed at the highest rate regardless of their place of origin, but Alberta brewers will be subsidized by taxpayers based on the volume of their sales.
"For sure, you need a strong, healthy local business environment for the craft beers in your own province, but you can't do that on the backs of other craft brewers," said Ken Beattie, executive director of the B.C. Craft Beer Guild.
The province announced the New West Partnership tax plan last October, which increased the existing tax on small beer producers in Canada to $1.25 per litre from $0.10 per litre.
About 30 B.C. brewers that ship product across the provincial border will be affected. Beattie says local B.C. companies are shocked, especially the new players on the market.
"We have a number of our newer breweries who have looked at [Alberta] as a new market so they've invested in sales agents, they've invested in equipment … to plan for that market and now that door, they've literally put a wall around it," said Beattie.
Consumers in Alberta will see an increase of on average of $2.30 for a six pack.
Albertan brewers have the potential to be subsidized up to $12 million in grants under a new provincial program, an incentive that isn't available in B.C.
With files from the CBC's The Early Edition.
To hear the full interview listen to audio labelled B.C. craft beer brewers concerned over Alberta tax hike.