Lower Beer Tax a Better Option than Minimum Price?

Premier Doug Ford did something you can hardly expect from a liberal politician, he delivered on a key campaign trail promise. In a move that is surely designed to boost a market that has long been stagnating, beer lovers will be happy to know that they will be charged $1 for a beer. At the same time, it offered businesses the chance to have access to premium shelves as well as lucrative advertising opportunities.

Buck-a-Beer is a big success, but as they say, why settle for good when you can get better? It’s no secret that the buck-a-beer will address the concerns of both the beer makers and beer lovers, but from a purely economic perspective a better option could’ve been opted for.

At present the stores usually charge $35.50 for a case of 24 bottles. The price per bottle comes down to around $1.48. Although, the buck-a-beer would definitely prove helpful for the beer lovers but it will leave a key problem unaddressed i.e. the high taxes on beer.

At present, there’s a 58.7 cent tax on a $1 beer bottle. This is something that is sure to continue even under the buck-a-beer scheme. The scheme is supposed to cater to compensate the beer stores by reducing their marketing expenses as well as exposure costs by offering them advertising opportunities in the city’s most circulated magazines and newspapers.

Some of the other taxes that are imposed on the beer include 10.6 cent excise tax, 36.6 cents in provincial markup as well as 11.5 cents in sales tax. The owners still have to buy the ingredients and other necessary equipment on that 41.3 cent per bottle.

The Ford scheme solves a lot of problem, but it would’ve been even better ad the beet tax been removed or at least lowered as it would’ve solved the problem more thoroughly.

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Emmy Skylar

About the Author: Emmy Skylar

Emmy Skylar started working for Debate Report in 2017. Emmy grew up in a small town in northern Manitoba. But moved to Ontario for university. Before joining Debate Report, Emmy briefly worked as a freelance journalist for CBC News.  She covers politics and the economy.

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