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.
Read more Business News
- Orchardists busy after rainfallPenticton / S. Okanagan
- Industrial zone floodedKelowna
- Smith Creek: fully containedWest Kelowna
- Ennis withdraws parole requestWest Kelowna
|QHR Technologies Inc||1.17||+0.02|
|Anavex Life Sciences||0.28||-0.045|
|Copper Mountain Mining||2.82||+0.06|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.19||+0.01|
The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...
The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...
Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...