By Isaiah Santos
On April 1st, 2025 the UCP (Alberta government) added an ad valorem tax to the existing flat tax on wine. You can read more about this tax here, but in essence 94.3% of wine in the province has gone up in price, and 64.7% has been affected by the highest tax tier of 15%. Combined with our weak Canadian dollar and record high shipping costs, this additional tax is having disastrous effects on Alberta’s wine & hospitality industry.
On May 14th the new wine tax was addressed in legislation. Dale Nally, Minister of Service Alberta and Red Tape Reduction is quoted saying “This ad valorem tax that we put on high end wine actually applies to only 18% of wines sold in this province”
(full clip https://www.youtube.com/live/OC08729oJMM?t=4497s)
This is false. Effectively, 94.3% of the wines in the province are impacted, with the exception of 5.7% (the result of industrial farming). For those of us that enjoy wine that retails above $30, there are significant price increases.
What does this mean for the industry?
Restaurants, importers, and retailers are now having to question what wines they are able to work with. In many cases, wines that have had success in the past are unable to be reordered due to escalating prices. This is resulting in a more limited selection and an overall decrease in the quality of wines available in our province.
When reaching out to other local retailers and importers, all that responded shared similar findings — we are being butchered by this additional tax. In the case of Metrovino and seven other independent wine businesses 98% ~ 100% of our product is being affected. One importer reported that the average increase in retail price per bottle due to the ad valorem tax was $6 ~ $7 and this is despite only 60% of their portfolio being affected! With prices that are now among the highest in North America, less selection, and an overall decrease in quality it is hard to understand why this additional tax was implemented, especially since it came at zero consultation with industry professionals.
Why was this tax implemented?
Dale Nally claims that this tax will give the Alberta province approximately $23 million in annual tax revenue, the equivalent of only ~$5 per Albertan per year. This is a false claim, as it assumes buying trends will not change. Undoubtedly, cheaper, industrial wines will be favoured as they can slip under this new ad valorem tax, whereas, quality wines with their steeply increasing prices will decrease in sales. This market shift results in a lose-lose situation, with an erosion of value, and lower than projected tax revenue.
If the Alberta government must implement an additional tax on wine, a more effective method would be to continue with the system we have been working with for the last 30+ years — a flat tax, equally distributed across all products including spirits and beer, not one that solely targets authentic wine. This would protect the diversity of products on our market while still generating revenue for the province.
What can you do?
Voice your concerns. We are in a time of political unrest, and it is now more important than ever to exercise your rights and civil duty as a citizen to speak out, not just about this tax, but on all matters.
Also send it to your constituency: https://www.assembly.ab.ca/members/members-of-the-legislative-assembly/constituencies
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Al Drinkle’s Article - Alberta Wine Tax Changes
Alberta Hospitality Association Article - The Real Impact of Alberta’s Ad Valorem Wine Tax on Restaurants
MarkH’s Wine Law Article - Alberta Hikes Wine Markups – Prices to Increase April 1st.
Listen to Richard on CBC Radio’s Calgary Eyeopener: Why a local shop is fighting back against a new tax on wine.
Time stamp of the ad valorem wine tax being brought up in Alberta’s Legislative Assembly on May 14th.
