Alberta’s New Wine Tax Framework Set to Raise Prices for Consumers

Starting April 1, 2025, Alberta will introduce a new tiered markup system on wine, increasing costs for both retailers and consumers. The province’s current flat markup of $4.11 per litre will be replaced with additional percentage-based fees on wines exceeding a set price threshold. This move is expected to have the biggest impact on higher-priced wines, making premium selections more expensive at liquor stores and restaurants.

Under the new system, wines with a supplier cost below $11.25 per 750 ml bottle will remain unaffected. However, wines exceeding this threshold will see additional markups based on their value. For example, a wine priced at $30 per bottle will see an added markup of $2.26, while a $75 bottle will increase by $9.01, significantly raising retail prices. The highest markup of 15% applies to wines with a wholesale price exceeding $25 per litre, meaning luxury wine buyers will see the steepest price hikes.

The change is expected to bring Alberta’s wine tax structure more in line with other Canadian provinces, where tiered alcohol markups are more common. However, critics argue that this will discourage consumers from purchasing premium wines and put additional pressure on restaurants and liquor stores, which may struggle to absorb the costs. Supporters of the change suggest it aligns with provincial revenue goals while keeping prices lower for budget-friendly options.

With the new markup system set to take effect next year, wine consumers in Alberta should prepare for price increases, particularly on mid-to-high-end selections. Those looking to stock up on premium wines may consider purchasing before April 1, 2025, to avoid the additional costs.

White and red wine in glasses with grapes
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