TORONTO, March 11, 2013 /CNW/ - The first significant policy decision of
the newly amalgamated Manitoba Lotteries Corporation (MLC) and Manitoba
Liquor Control Commission (MLCC) is a general liquor product mark-up
increase. The merging of the MLC and MLCC was promised to realize
operational efficiencies and cost savings. Yet, instead it is about to
increase liquor commodity taxes to raise more revenues from consumers.
Liquor manufacturers have been informed that provincial commodity taxes
on beverage alcohol products will increase effective April 1, 2013.
The widely questioned decision by Manitoba earlier this year to permit
direct shipments from out-of-province wineries to enter the province
tax-free may be a contributing factor to the decision to raise liquor
mark-ups on sales through government liquor stores in order to off-set
future anticipated lost revenues.
"The decision to jack-up spirits taxes once again is completely contrary
to what Industry had been told were the priorities of this Government",
explained Mr. Jan Westcott, President & CEO of Spirits Canada. "Clearly
this decision is inconsistent with the commitments made that the
merging of liquor and gaming would drive efficiencies for the benefit
of consumers and suppliers and, further, that Manitoba was committed to
nurturing local manufacturing of spirits".
Most spirits brands are expected to increase by $0.50 to $0.70 per 750
ml bottle when the new provincial liquor mark-ups are in effect.
Spirits Canada is requesting the Premier to reconsider this ill advised
tax increase on Manitoba consumers and require a debate and vote in the
provincial legislature for all future increases in liquor mark-ups in
the province as these are in essence disguised tax hikes.
Spirits Canada is the only national trade association representing
Canadian Spirits manufacturers with Member companies representing more
than 90% of all domestic spirits production.
SOURCE: Spirits Canada
For further information:
Mr. Jan Westcott
President & CEO
Cel. 416 707 8851