Distillery tax pitch approved

Photo: Greater Vernon Chamber

Greater Vernon Chamber general manager Dione Chambers (left) and board vice-president Krystin Kempton attend the B.C. Chamber of Commerce annual convention in Burnaby.

The Greater Vernon Chamber of Commerce’s campaign to have the distilled spirits sector treated progressively and fairly has been endorsed provincially, the chamber announced in a release.

On May 25, delegates at the B.C. Chamber of Commerce conference in Burnaby approved a resolution from the Greater Vernon Chamber that calls on the federal government to reduce the excise tax on distilled spirits to $1.77 per litre on the first 150,000 litres of absolute alcohol, and to match the excise rate in the U.S. on an ongoing basis on an ongoing basis.

“We thank the B.C. chambers for their support and it reflects an interest in businesses not only being treated equitably but also being allowed to reach their full potential as a creator of jobs and a key linchpin in the economy,” said Dione Chambers, Greater Vernon Chamber general manager.

“We have worked closely with the Dyck family at Vernon’s Okanagan Spirits Craft Distillery and the Craft Distillers Guild of B.C. and we understand the regulatory challenges they experience, particularly when it comes to competition from the U.S.”

Currently, a distillery in Canada experiences an excise duty of $12.375 per litre of absolute alcohol, which is equivalent of $3.51 per 750-millilitre bottle of spirit at 40 per cent alcohol by volume.

“Reducing the excise tax would provide existing and new distilleries with funds that could be reinvested into additional equipment, labour, facilities and distribution channels. It would also mean additional opportunities for Canada’s agricultural industry as distilleries purchase grains and fruit for alcohol production,” said Chambers.

“We would hope that the federal government hears the collective voice of B.C. chambers of commerce on this issue and takes decisive action to reduce the financial burden on entrepreneurs and promote sustainable economic growth across Canada.”

The resolution will now go to the Canadian Chamber of Commerce with the backing of the B.C. Chamber and the Greater Vernon Chamber can advocate to the federal government with the support of the B.C. Chamber network.