Just when summer settles in nicely it looks like the price of wine will go up in Ontario today at the LCBO (sigh)…
The price of wine is increasing by 2 per cent today, it’s the first of four tax hikes on wine. The Canadian Taxpayers Federation is calling on the government to reverse today’s 2 per cent hike in an ad valorem tax (an ad valorem tax (Latin for “according to value”) is a tax whose amount is based on the value of a transaction or of property).
Premier Wynne originally announced the tax increase in her 2016 budget, which is applied as a markup by the LCBO.
HOW MUCH TAX HAVE WE BEEN PAYING?
The tax is moving from its current rate of 65.5 per cent to 67.5 per cent for Ontario wine, and from 71.5 per cent to 73.5 per cent for imported wine and it doesn’t stop there.
Today’s markup is expected to increase a further 2 per cent in 2017 and 2018 and by 1 per cent in 2019 PLUS the 2016 Ontario budget already increased the basic tax on non-Ontario wine purchased at winery retail stores by 1 per cent at the beginning of June.
Like the LCBO markup tax, this tax hike will also increase by another 1 per cent in 2017, 2018 and 2019.
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