Saturday, October 25th8.6°C
23888
23778

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 TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23901

FEATURED Property
20431452033 Southview Avenue
4 bedrooms 3 baths
$445,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22707