Wednesday, October 1st13.0°C
22738
22438

Tax break will help craft breweries

British Columbia's small breweries no longer face a major tax bill for increasing their sales, says Rich Coleman, the minister responsible for liquor control and licensing.

Coleman said Monday the Liberal government approved a tax break that allows smaller breweries to expand without immediately paying the same taxes major beer producers face, but it's a move that has caused him a bit of a political hangover.

After all, Coleman said he returned Friday two tickets to the Bahamas, which were offered to a Liberal Party fundraiser by one of the smaller breweries, Pacific Western Brewing Company, that stood to benefit from the tax change.

"We should not have taken those," Coleman said. "No money was accepted."

Coleman said under the old liquor markup policy, a higher tax rate kicked in when a brewery produced 160,000 hectolitres of beer, each hectolitre being 100 litres of beer.

With the new policy, smaller breweries will pay increased taxes on an incremental scale that rises every 5,000 hectolitres sold above 160,000 hectolitres, he said.

The change will help seven B.C. craft breweries to expand and create local jobs, Coleman said.

"Now, a small brewery can look at this and know when they are going to hit certain thresholds of tax and they can make their business decisions on whether it's time to add a faster bottling line or increase their production," Coleman said.

The development of the beer policy resulted in a political wrangle for Coleman, starting on Nov. 14 with the Liquor Distribution Branch, the arm of government that sets liquor policy.

Letters were sent to beer suppliers, informing them of a new markup policy that included a tax rate covering sales from 160,000 hectolitres to 400,000 hectolitres.

But officials in Coleman's office issued a statement last week calling the Nov. 14 letter an inadequate version of the tax policy and said a new one was on the way.

The new policy announced Monday covers beer-tax changes from 160,000 hectolitres to 300,000 hectolitres.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14805.44-155.069
S&P CDNX896.35-12.94
DJIA16804.71-238.19
Nasdaq4422.085-71.305
S&P 5001946.16-26.13
CDN Dollar0.9007+0.0052
Gold1218.90+3.40
Oil88.92-0.19
Lumber344.10+6.30
Natural Gas4.019-0.004

 
Okanagan Companies
Pacific Safety0.135+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.04
Cantex0.075+0.01
Anavex Life Sciences0.1804-0.0036
Metalex Ventures0.0550.00
Russel Metals34.68+0.11
Copper Mountain Mining2.29-0.13
Colorado Resources0.16-0.005
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 





FEATURED Property
204967512 - 3300 Watt Road
3 bedrooms 3 baths
$2,395,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


23266