Increasing taxes on beer can leave a skunky taste

Don’t follow New Brunswick’s lead, writes Paige MacPherson

Welcome to Alberta, home of great beer selection and competitive beer taxes ( for now). However, calls for higher taxes and potentially less access to our favourite suds are a real buzz kill.

Currently, the provincial graduated beer tax structure taxes beer from both in- and out- ofprovince brewers at the same rates. Tax differences are dependent only on a beer’s alcohol content ( high alcohol beers are taxed more) and brewery size.

Small brewers ( like Alley Kat) are taxed less than medium or large breweries ( like Sleeman), similar to a small business tax rate. That gap widened further when the Jim Prentice government increased the tax on standard ( large production) beer to $ 1.20 per litre in March. Sorry, Keith’s drinkers.

Importantly, brewery location does not impact brewery taxation.

The Alberta Small Brewers Association recently held its annual general meeting. Though asked, they have yet to make public their current position on this. They have expressed excitement about working with the NDP government to address tax and red tape, as the Alberta Liquor and Gaming Commission is continuing a review of its laws.

However, in the past, the majority of the founding members of the Alberta Small Brewers Association were unhappy with the tax equality between in- and out- of- province brewers. In 2013, 12 of 16 association members got together and asked the provincial government to impose higher taxes on out- of- province small and medium- sized brewers.

They argued that other provinces tax Alberta brews at higher rates than the locals, so we should do the same.

We wouldn’t impose a sales tax just because New Brunswick has one. That would hurt Alberta consumers. So why would we increase our beer taxes and potentially limit our beer selection because other provinces do?

As its members prepare to once again lobby the government, it’s time the Alberta Small Brewers Association clarified its position.

Previously, members argued taxing small brewers from outside Alberta at higher rates would signify “supporting the local beer industry.” But pushing someone else down is no way to pull oneself up.

To truly support the industry, the government should lower beer taxes across the board, making beer easier to sell and buy.

Further, the government could change the way it applies taxes to all small and medium brewers. All growing breweries are pinched by a retroactive taxation scheme that makes expanding a brewery unnecessarily expensive.

As an individual in Alberta, your income is tax free up to about $ 18,000. Any income above that, up to $ 125,000, is taxed at 10 per cent.

Brewers get a tougher deal. Beer is taxed at 40 cents a litre up to 20,000 hectolitres, but the second they cross that arbitrary 20,000 threshold, every drop they’ve brewed is taxed at 51 cents. At a 22- per- cent increase, modest growth doesn’t seem all that lucrative.

Alberta has unmatched beer selection, access and low taxes on all our favourite beers. It’s a great place for brewers across Canada to sell beer because they aren’t slapped with out- ofprovince taxes. This means more selection for Albertans.

The Alberta Small Brewers Association members’ position from 2013 called for changing that.

The group has the opportunity to shift away from its members’ bitter protectionist pushes and toward increased accessibility for Albertan beer drinkers. But they first must come clean on their current position.

Some of us enjoy a hoppy Big Rock Rig Pig Ale. Some prefer a malty Propeller Porter. Some like a refreshing Steam Whistle Pilsner.

It would be unfair to tax one of these Canadian craft brews more than the others. Albertans shouldn’t be penalized for cracking open the cold one they like best.

As its members prepare to once again lobby the government, it’s time the Alberta Small Brewers Association clarified its position.