Written by Mark Hicken Mark Hicken
Category: Latest News Latest News
Published: 12 March 2013 12 March 2013

British Columbia's PST will return as of April 1, 2013. The return of the PST also means the increase of certain taxes on wine. This is due to the fact that the PST has (and previously had) a higher tax rate on alcohol (10%) than on other products (7%). When the HST was introduced, the combined federal/provincial sales tax rate on alcohol went down from 15% to 12%. This would have created a small reduction in consumer prices ... except that the government raised "liquor board markup" rates at the same time to eliminate any savings (for example, the rate on wine was increased from 117% to 123%). As of April 1, the liquor board markup rates will go back down and the sales tax will go back up. For the most part, consumer level retail prices should remain the same. However, there are a number of exceptions ...

For more information, see these earlier articles: Removal of HST Will Affect Wine Industry and BC's Budget: Effect on Wine Industry (which discussed the changes when the HST was originally introduced).