E-Malt.com News article: Canada, BC: British Columbia modifies beer taxes for smaller breweries

Seven smaller breweries in British Columbia are expected to benefit immediately from a new sliding scale for the province's mark-up on beer sales, Grainews reported on November, 27.

Where the province has previously offered a reduced mark-up to breweries producing 160,000 hectolitres or less - the equivalent of about 5.456 mln standard bottles of beer - it will now raise the mark-up incrementally between 160,000 and 300,000 hL.

"The change moderates the mark-up rates in a manner that will help small breweries to grow," the province said.

For example, at 160,000 hL, the mark-up rate is C$1.16 per litre for packaged beer and 81 cents per litre for draft beer. For packaged beer, the rate then slides upward by about two cents for every 5,000 hL of production between 160,000 and 300,000 hL. For draft beer, the rate slides upward by about one cent per 5,000 hL.

Previously, at 160,001 hL, a small brewery would be taxed at a rate of C$1.75 per litre for packaged beer and C$1.20 per litre for draft beer for every hectolitre produced - including the first 160,000.

"This change supports small breweries in B.C. and gives them further incentives to grow," said Mark James, owner of North Vancouver-based craft microbrewery Red Truck.

"While Red Truck is a small brewery right now, it's nice to know that as we expand there are fair policies like this in place that will support our successes moving forward."

The province said that the change in the mark-up policy follows "consultation with smaller and larger brewers in early 2012."


30 November, 2012