Courtesy: CHAT Newsroom

By Angela Kazmierczak

Tax increase on alcohol to start in April

Feb 8, 2023 | 5:13 PM

MEDICINE HAT, AB – Just about everything costs more these days, and in a few months you can add liquor to the list.

Buying a case of beer or your favorite bottle of wine will be more expensive as a 6.3 per cent tax increase takes effect in April. A local liquor store manager says it’s making him rethink how the alcohol industry works.

“Personally, I feel it is too much. I feel it’s too much. It’s going to drive customers to find things that are cheaper. It’s going to affect my ability to attract new customers, when things already cost as much as they do with inflation,” said Aaron Janzen, general manager of Hat Liquor.

Janzen says the price increase will drive consumers to bigger commercial businesses – especially during a time when people are tight on money.

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“A customer who is hurting for money is going to drive [elsewhere] to save 10, 15 cents on the dollar,” said Janzen.

He says, unlike small businesses, commercial businesses are able to get cutbacks on larger orders.

“Commercial competitors, not the big competitors, they can sell at a much cheaper price closer to the cost of product than I can. Unfortunately my mark up is my mark up, and I can’t change that,” said Janzen.

According to the Canadian Partnership Against Cancer, citing a report from the University of Victoria’s Centre for Addictions Research, they suggest that higher alcohol prices leads to lower alcohol consumption. In addition, higher alcohol prices and taxes are important in combating consumption and harms, like cancers.

Some Hatters have other thoughts about the tax increase on alcohol.

“Most people are probably going to keep drinking.”

“We still consider it a luxury. It’s not a necessary thing, so if you pay taxes on it, it’s something you choose to do – that’s fine. I don’t like the fact that everything’s going up. Liquor is just one of them – I’d rather see the liquor prices up, then the gas prices.”

“I don’t think the people that sell it are making much money, really. Because the government controls the import costs, in terms of them buying it.”

Janzen still hopes people will support local businesses.