The provincial government announced sweeping new changes to the sale of beer and wine in Ontario on Thursday, which will make it easier, and perhaps cheaper, to get a good buzz going.
In addition to its highly publicized move to open up beer and wine sales at convenience stores, the Ontario government has announced that it is introducing legislation to eliminate the 6.1% basic wine tax at on-site winery retail stores.
The Province says that if the legislation passes, the removal of the basic wine tax will put Ontario on equal footing with other wine-producing provinces like BC.
It’s a move that even the PC’s strongest critics are welcoming.
Niagara-on-the-Lake NDP MPP Wayne Gates has advocated for such a tax cut since 2018 and called the move “a major win for winemakers and workers in the Ontario wine industry, especially in the Niagara region” in a Thursday statement.
“Niagara is the biggest wine-producing region in the country and contributes over $1 billion to Canada’s GDP,” said Gates, adding that “the elimination of this basic tax will help Niagara’s economy and create more jobs for residents.”
“I want to thank workers and winemakers in Niagara and across the province who came together to make their voices heard and advocate on this issue,” said Gates. “By coming together, we got a major win that will support the tourism industry and job creation right here in Niagara.”
Gates was joined by winemakers and industry stakeholders at Queen’s Park to table a bill seeking to eliminate this very tax, marking the third time since 2018 the MPP attempted to get such legislation through ā a move the PC Party now gets to claim credit for.
Regardless of who gets to claim ownership of the bill, winemakers seem quite pleased by the proposed changes.
Aaron Dobbin, president and CEO of Wine Growers Ontario, didn’t mince words, calling Thursday “one of the best days the Ontario wine industry has had in decades.”
“The measures announced by the Government of Ontario are the first step in allowing Ontario wineries and grape growers to grow and thrive,” said Dobbin.
Next steps will see the government continue to meet with stakeholders and industry partners to iron out details of the future marketplace, including licensing, wholesale pricing and taxes, mark-ups, and fees.
In addition to slashing the basic wine tax, the province will conduct a broader review of taxes and fees imposed on all alcoholic beverages, “with the aim of promoting a more competitive marketplace for Ontario-based producers and consumers.”
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