Business groups urge Alberta to scrap new wine levy

Bottles of British Columbia wine on display at a liquor store in Cremona, Alta., on Feb. 7, 2018. THE CANADIAN PRESS/Jeff McIntosh

Industry groups are urging the Alberta government to repeal a new tax on wine, saying it squeezes consumers and undermines efforts to support local business and boost trade between provinces.

The Alberta Gaming, Liquor and Cannabis Commission began imposing the charge in April of last year and associations representing wine growers, restaurants, importers and retailers say they were blindsided by the change.

The “ad valorem” levies range from five per cent to 15 per cent depending on the per-litre cost of the wine.

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The new charge was announced shortly after a deal was reached enabling B.C. wineries to sell wine directly to Alberta consumers.

“Most of that activity now is at risk because several weeks after that agreement, the Alberta government made up a brand new Alberta wine tax using a Latin word from a dead language that no one uses anymore, confused industry, annoyed customers and it’s just costing people more,” Jeff Guignard, president of Wine Growers British Columbia, told a news conference Wednesday.

Guignard cited as an example the Merlot produced by B.C. winery Dirty Laundry, which would have sold direct-to-consumer for $29.99 but now costs $35.49. He called it a “blatant tax grab” by the province.

“They have not consulted with industry about this and the net effect of it is, in British Columbia, we’re seeing 50 per cent declines in wine club sales. That’s thousands of dollars of revenue that our small businesses need to succeed,” he said.

“Additionally, some wineries are so frustrated hearing Albertans be frustrated about this tax that they are simply pulling out of the market entirely and not bothering to participate.”

There’s been a push toward boosting interprovincial trade in the face of U.S. tariff threats in recent months.

“It breaks your brain, doesn’t it?” Guignard said.

“On one hand, we’re saying, ‘Let’s open up trade between provinces, tear down these barriers.’ Another is saying, ‘Oh, by the way, you owe us a massive new tax on it instead.’”

Mark von Schellwitz, vice-president at Restaurants Canada, said his group has been trying to work with the provincial government behind the scenes, but was getting nowhere.

“There’s a real sense of frustration,” he said. His group and others are calling on the Alberta government to scrap the “complicated and punitive” tax and return to a flat tax that has worked well for decades.

Alberta has no provincial sales tax. But industry advocates say the wine levy amounts to a sales tax singling out one sector. Von Schellwitz warned it could be a “slippery slope” that imposes higher costs on other products down the line.

Phoebe Fung, who owns three Vin Room restaurant locations in Calgary, said she’s had to absorb a 20 per cent increase in costs for wine, amounting to $60,000 a year, at the same time people have tightened their budgets for dining out.

“We’re riding it through right now, but I will tell you — this is not sustainable in the long term,” she said.

Fung added that she’s had to buy less wine from Canada because it become more expensive.

“That’s not where we want to go as a Canadian and local restaurateur.”

Service Alberta Minister Dale Nally said in a statement that Alberta is the “most tax-friendly, open and free jurisdiction in Canada for alcohol, including wine.”

He said the tax only applies to 16 per cent of wines sold and that after taxes a $20 bottle of wine is up to 86 per cent more expensive in other provinces compared to Alberta.

“Our government’s approach balances affordability, competitiveness for small businesses, and a strong, viable liquor industry,” Nally said.

Von Schellwitz said Nally’s numbers aren’t accurate and he’s told the minister that directly. The industry groups contend that 94 per cent of wines in the province have gone up in price, with almost two-thirds falling into the highest 15 per cent tax tier.

“Quite honestly, that just pisses restaurateurs off because it’s just simply not the reality that’s out there right now,” Von Schellwitz said.

This report by The Canadian Press was first published Jan. 14, 2026.