April 10, 2017

As members may be aware, the federal government has increased the excise duty on alcohol products by 2 percent. The new excise rates can be found on page 2 of the attached PDF. The rates will automatically be adjusted to the Consumer Price Index on April 1 of every year, starting in 2018.

The excise taxes are paid by manufacturers. While some news articles have speculated about how the tax increase will affect consumer prices, we don’t yet know for sure how manufacturers will pass these costs along, nor how retailers will react.

The LDB has shared with ABLE BC the following information for wholesale customers:

  • The excise increase will be reflected in the LDB’s wholesale price list over the next few periods, as prices are adjusted. The LDB’s wholesale price list for Period 1 is available on the LDB’s wholesale website.
  • The Period 2 price list will be available for wholesale customers to view on April 8, 2017.

They have also shared with us the following information for hospitality customers:

  • On April 20, 2017, the retail price list for Period 2 will be released. This date has been postponed (from April 12, 2017) to allow time for vendors to react to the excise duty increase.
  • The retail price list for Period 2 will still come into effect on April 30, 2017.

For more information download the attached letter from the LDB.

We will share more details with members on this issue as they become available.

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