Albertans will face higher wine prices starting April 1, 2025, following changes announced by the provincial government. Finance Minister Nate Horner unveiled the new budget, which includes a rise in liquor markups on wine, drawing concerns from local merchants.
The new policy will see a flat rate increase of 15 cents per 750 ml bottle of wine, along with a new ad valorem fee based on the price of the wine. For instance, consumers purchasing a $25 bottle can expect a price hike of 20 to 40 cents, while bottles priced at $50 may experience price increases between $2.80 and $3.25.
Richard Harvey, co-owner of Metro Vino, voiced concerns about the potential impact on customer loyalty, suggesting that price hikes on popular wines could be seen as a form of taxation. “If the price goes up a buck or two on somebody’s favourite wine, this is taxation by another name; we’ll just have to pass this on to the customers,” Harvey remarked. Ivonne Martinez, president of the Alberta Liquor Store Association, echoed Harvey’s concerns, highlighting the confusion this may cause for liquor retailers.
Since the privatization of liquor sales in the 1990s, the Alberta Gaming Liquor and Cannabis (AGLC) has applied a flat rate based on the alcohol content. The upcoming markup represents a shift to pricing based on the retail cost of wine. New rates will apply: 5% for wines priced between $15 and $20 per litre, 10% for wines priced between $20 and $25 per litre, and 15% for wines above $25 per litre. Martinez criticized the targeted nature of the new fees, suggesting it will complicate matters for liquor retailers.
“We were quite shocked by it,” Martinez said. “Now this is going to add extra red tape, and it’s going to be difficult for liquor stores to figure out exactly how much they need to charge.” However, the provincial government maintains that the changes were made after consultations with industry representatives, with the goal of addressing market inequalities. Brandon Aboultaif, press secretary to Dale Nally, Alberta’s Service Alberta and Red Tape Reduction Minister, emphasized that the aim is to minimize consumer impact while encouraging responsible pricing.
While the government asserts that only 16% of wines will be affected by the price increase, industry insiders predict most products will experience higher costs. Harvey questioned the necessity of the changes, calling for higher initial thresholds for the ad valorem fee. “Why is this necessary? What was the logic behind this?” he asked.
The price hikes will only apply to new stock ordered after April 1, allowing consumers some time to purchase their preferred wines before the increased costs take effect.
In addition to the liquor markup changes, the provincial budget introduces several new tax measures, including a new 8% personal income tax bracket for earnings up to $60,000, effective January 1, 2025. This reform is expected to save individuals up to $750 next year. A new non-refundable tax credit of 2% for specific credits claimed above the $60,000 income threshold will also be introduced.
The budget also includes measures to tackle contraband tobacco, including increased enforcement personnel and higher penalties. Education property tax rates will rise, with residential property taxes increasing from $2.56 to $2.72 per $1,000 of assessment, and non-residential property taxes rising from $3.76 to $4.00 per $1,000.
These changes reflect the government’s efforts to boost revenue while avoiding alterations to corporate tax rates. The increased funds are expected to support healthcare, education, and community initiatives, particularly for vulnerable Albertans.
As the government implements these new measures, businesses and consumers are bracing for the financial adjustments that lie ahead. The balance between revenue generation and social responsibility will continue to shape Alberta’s economic landscape in the coming years.
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