Government Tax Revenue

Government Revenue

Even though average beer prices in Ontario and Quebec are similar (see Ipsos Reid price survey), the Ontario government commodity tax on a case of 24 cans is more than double the Quebec beer tax. These taxes fund important services like health care and education. Convenience store and gas station liquor sales won’t lead to lower prices without major alcohol tax cuts. Learn more.

“Strikingly, the tax revenue generated per litre of alcohol sold in Alberta has declined dramatically in the years since privatization. By not maintaining the 1993 level of tax revenue per litre of alcohol sold, the Alberta government has foregone nearly $1.5 billion dollars.”
 

Ontario: Competitive even with higher tax rates

C-store market tax rates vs. Ontario

 C-store Market tax rates vs. Ontario

Convenience store and gas station liquor sales won’t lead to lower prices without major alcohol tax cuts. Matching New York’s beer tax rate would cost Ontario $750M/year on beer alone. Matching Quebec’s beer tax rate would cost $350M/year.

Ontario: More dollars for Public Services

Percentage Change: Provincial government revenue per litre of absolute alcohol sold (ex sales taxes)
2002 - 2012

 More dollars for Public Services

Ontario’s existing liquor retailing system has grown alcohol tax revenues at a significantly faster rate than Alberta and British Columbia since they deregulated their liquor retail systems, even though Ontario prices have increased less. Source: Statistics Canada Tables 183-0017, 183-0019