LCBO prefers that only rich people abuse alcohol
When the HST comes into effect on July 1, dry cleaning and plumber calls will be more expensive, while books and diapers will cost the same. But one of the few items that was expected to drop in price—booze—is actually going up. According to the Star, the price hike is a reality, despite the fact that alcohol taxes are falling from their present 17 per cent to the HST’s 13.
For example, a 750 millilitre bottle of Wolf Blass Yellow Label Cabernet Sauvignon, a popular Australian red wine that currently retails for $16.35, should be dropping in price to $15.80 thanks to the HST.
However, sources say the retail price will jump to $16.45—only a dime more than it is now, but 65 cents higher than it needs to be.
Similarly, the HST should lower the price of a 750 millilitre bottle of Pelee Island VQA Chardonnay, an Ontario white, from $17.95 to $17.35. Instead, it will go up to $18.05. That’s 70 cents in lost savings to wine drinkers.
The LCBO justifies the increase by saying that it has to keep prices high because of its “social responsibility”—in other words, so that Ontarians don’t all become alcoholics when liquor becomes five per cent cheaper.
Who knew that we were that close?
• HST will lower tax on booze, but the price is going up [Toronto Star]
• What’s taxable under the HST and what’s not? [Government of Ontario—PDF]
Time to privatize.
Wow. So a government-run business (the very government giving us the HST) won’t pass on the tax savings to consumers (the very thing they said the HST will result in) why in hell would a private business.
privatizing may be the way to go.
At this rate, I’ll either be shopping now to July 1st at the lcbo, making my own.. or the best idea shopping in Buffalo..
Because Adam, they would have competition.
In 2005 the Finance Minister, Greg Sorbara, commissioned a blue-ribbon Beverage Alcohol System Review Panel to review the LCBO and determine whether it was being managed effectively and efficiently and providing the maximum return to the citizens of Ontario. The conclusion was that Ontario tax payers could net an ADDITIONAL $200M in revenue by privatizing with no corresponding loss in ‘social responsibility’. Upon receiving the report, Mr Sorbara promptly shelved it.
Read it here: http://www.fin.gov.on.ca/en/consultations/basr/report.html
As the child of an alcoholic, I want alcohol taxed at a higher rate to help offset the costs to our society — the financial support for departments funded exclusively by our taxes — police, child protection, health care, the courts, and to help support the victims of crime where alcohol is a factor, like drunk driving, assault, and domestic abuse.
Lets see. The government run LCBO in the name of social responsibility will increase profitability by raising mark ups to take the place of hidden taxes. It seems at the same time the province will apply HST to the price of gasoline, on top of the already imposed provincial taxes on gasoline. I am no lover of the GST, but at least when it was imposed the Fed’s removed the hidden excise tax. The province wins. The consumer pays.
As a child who is an alcoholic, and a working one at that, I’m as incensed by the social responsibility as I am by the idea that the difference be spent on departments related to alcohol abuse. I want may nickelback.
So it’s Ok for the other provinces to drink for cheap but we better watch those from Ontario because 60 cents will make us out of control, WE DON’T NEED A BABY SITTER…I’M TIRED OF THIS GOVERNMENT CONTINUALLY WRAPPING US IN BUBBLE WRAP…ENOUGH!!!
Always money. That’s all Ontarians care about. It’s truly pathetic.
Yes Francois, only caring about money is pathetic, but even more pathetic than that is not knowing how to reason logically, and making obscene generalizations about people you largely don’t know. I don’t give a hoot about the price increases, but this I had to comment on.
Don’t just seethe, DO SOMETHING!!!
I am selling my (overpriced) Toronto house and buying a similar property on a lake in Asheville, NY for 1/3 of the price …only a couple of hours away from my doctor and dentist…but light years away from the TTC, the LCBO, Lotto-gate, e-health, the HST and all of the McGuinty run fiasco’s – MORONS!!! did!!!
And, oh…Yellowtail at Tops is only $4.95 a bottle – the price that it was intended to sell at.
Life just got better.
Cheers!
privatizing is the best way.. are we free market or not????
How much the chairman of lcbo makes a year…?????
With the LCBO we have access to a consistent variety of alcohol that yes can be obtained by other ‘corner stores’ however would not necessarily stocked. It has further reach then most companies can afford. Also the LCBO makes the wonderful world of booze openly available for both rural and urban demographics to explore this vast variety with semi-knowledgable staff. However I cannot agree that raising the tax will stop us from becoming alcoholics, however sufficient studies show the tax on tobacco has significantly reduced sales for the average smoker. So this may not eliminate alcoholics, but possibly hinder excess consumption over long periods of time.
This government, and particularly this province, has gone to the dogs. They will continue to apply tarriff after tarriff and tax after tax and law after law and bi-law after bi-law because this government is not interested in the concerns of its people. We are a source of income for its own devices, and a statistic in which we are used to implement these taxes, and laws and so on. A living, breathing cash grab. Money doesnt grow on trees, we are grown to produce money. We are in the 10 highest taxed countries in the world.
Nothing these idiots do surprises me. Ripping us off at every opportunity and taking your money for human errors. Offering staples of life at a premium price. Found something free? how did they miss that? Dont worry, they got it now.. pay up, son. I can now understand at this age of only 30 why people go live off the grid. Time to start looking for a new home country i think. this ones lost all its appeal.
M-A-P: My complaining about Ontario’s obsession with money was a simple expression of irritation that tells you strictly nothing about my ability to reason logically; consequently, your response tells me a lot about yours. The issue is very simple: for social reasons that may or may not be valid, the Ontario government did not want the cost of alcohol to drop following the introduction of the HST. That has been known and posted on the Ministry of Revenue’s Web site for months. As for my generalization, it is a simple observation. Very few people who share your point of view about money actually post anything. Try convincing people that taxes have dropped in the past 10 to 15 years and you will see what I mean.
Privatize the LCBO all you want; as long as the government imposes an additional sin tax. Alcohol and cigarettes should be more expensive, not cheaper.
To all of you who think that alcohol and cigarettes should be more expensive:
so should be
– gas
– tires and auto parts
– driving licence
– electricity
– junk food and, in fact, all food with good amount of fat
– air travel
as all of the above could be considered as “not good for you or the environment” and thus should pump more dollars into govs coffins.
be careful what you wish for.
HELLO everyone! I love this bitch session. My advice is to SUCK IT UP! You all voted for these guys and now you do not like the ongoing lying, cheating, and stealing money from your pocket? What did you expect from a pointy headed idiot like Mcguinty who LIED to us all by promising to not raise taxes, then dinging all of us after he is voted in! He set the tone for this ongong tax grab grab right at the beginning of his tenure and the HST is just the latest installment.
The solution is to start shopping again in Buffalo, start making your own wine, ask every single retailer you buy something from if they can do better for cash – if they are not willing to, then tell them your going down the street to find someone who will – they are out there, folks!
I work in the construction industry, and the underground economy is huge, and now it is going to get bigger – this is major concern of the legitimate contractors, and now these good firms are going to face even stiffer competition.
I figuired out how the Liberals are going to add the 590 tousand jobs with the implementation of the HST – they are going to expand the public service, cause they can keep raising the tax rates to pay for it all – you do not seriously believe that the HST rate is going to remain where it is, do you?
I would like to thank the Ontario voters for all of this – my question to them is “is this what you voted for”?
Oh this has nothing to do with stopping people from drinking its for more cash, and a company would do it too.
I still prefer the profits go to schools and whatever rather than some investors private jet collection.
The days of Mrs. Little Old Lady investing for her retirement in X company are long gone, filled in with uber powerful families etc.,
While I don’t love the LCBO for it’s prices, the money at least goes into the kitty.
Remember, if we were to suddenly sell it, in a few years, there would be over 1 billion a year that would be missing from the revenues….likely made up with another tax!
What’s most amusing? Queen’s Park has it’s own private wine label! Walk into the gift shop and you can buy white or red…oh…and they are also served at functions within for free!!!
Why don’t they look in there own backyards first…….meaning there employees??? I know for a fact they just higher a longtime alcoholic and not even bondable at that. Great job on the background check, talk about corruption within.