Provincial budget delivers tax fairness for Ontario cider makers
The Ontario government has announced the craft cider makers in the province will get equal tax treatment.
The provincial budget announced on May 15 included a change to how Ontario’s craft cider makers are taxed. Starting on August 1, the government will harmonize the taxes levied on craft cider with those levied on craft beer. The markup on cider at the LCBO will be reduced from 60.6% to 32%. This change applies to all retail channels and licensee sales.
The announcement from the province came just one day after The Blue Mountains council passed a resolution brought forward by coun. Gail Ardiel that asked the government to level the tax playing field for Ontario’s cider makers.
The tax issue has long been a problem for craft cider makers in the province and has put them at a competitive disadvantage with craft beer makers.
Cider makers immediately welcomed the news contained in the budget.
“We applaud and give our sincere appreciation to the Ontario government for recognizing that the Ontario craft cider industry growth was being inhibited by a perplexing tax structure,” said Jennifer Dean, the chair of the Ontario Craft Cider Association, in a statement emailed to CollingwoodToday. “Today the Ontario government rectified the tax disparity and now Ontario Craft Cider will be taxed as a 100 per cent Ontario product and will never again have a more punishing tax structure than other craft alcohol beverages consumed in a similar way.”
Ian Smith, co-owner of the Spy Cider House and Distillery in The Blue Mountains, said the government’s announcement is huge for the cider industry. In an interview with CollingwoodToday, Smith thanked all of the industry voices who have been engaging with the government on the issue for many years.
“There have been a lot of people advocating for this for years,” he said. “As a whole, it’s incredibly great. It will help us a ton. It’s nice seeing things moving in the right direction after years of people in this industry lobbying for it and finally getting the recognition that we have been looking for for quite awhile.”
Ardiel was happy to see the issue resolved 24 hours after council supported her resolution. She said the cider industry will be huge for Ontario’s economy.
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“I believe this is and will be a serious economic driver that will only continue to blossom and grow to support the Ontario craft cider businesses,” Ardiel said in an email. “This will put more money in the pockets of these producers who create the cider that is 100% Ontario apples, grown and produced in Ontario by our farmers.”
Joel Loughead, a former cider maker himself and member of Grey Highlands council, planned to bring Ardiel’s resolution to his council table for support. Loughead praised the tax change.
“This is great, long overdue news for Ontario cidermakers, orchardists, and cider enjoyers everywhere. Allowing craft cider to finally be profitable will have a noticeable, positive impact on agri-tourism, culture, and local employment in Bruce and Grey counties,” said Loughead.
Simcoe-Grey MPP Brian Saunderson praised former MPP for Bruce-Grey-Owen Sound Rick Byers, along with cabinet ministers Lisa Thompson and Rob Flack for their support on the file.
“There have been a lot of wheels turning on that file,” Saunderson told CollingwoodToday in an interview. “It’s quite a large change. It’s going to affect micro-breweries and cideries, as well as our vineyards. It’s a large change that is going to be very helpful.”
Saunderson said, in the lead up to the budget announcement, his office contacted cider industry professionals and he was pleased with their reactions to the tax change.
“Everyone is very excited and wants to learn more about the details,” he said.
-- With files from Jessica Owen
