Right then. This post has nothing to do with the technology industry other than to (a) demonstrate the ludicrous nature of taxation in British Columbia; and/or (b) confirm that people in the technology industry are passionate about their beverages.
Those who have worked with me know that I like to enjoy the occasional glass of wine. Having just recently gone home (northern California) and discovered even more wine gems I decided I would take the leap, pay the exorbitant provincial tax at the border, and bring some wine back to my current habitat. To be fair, I am very aware of the “f**k-you charge” that occurs at the hands of the British Columbia taxation overlords.
For some reason though I can’t drop it. It’s time for a little public whine about wine taxation in British Columbia for those people lucky enough to bring in quality wine products. So here goes…
When you bring a bottle of wine into British Columbia (above your allowable limit of 1.5L) you can expect the following taxes:
- an excise tax ($0.62 per litre) - which is a duty which would otherwise be payable if the wine had been made in Canada
- GST (at 5%) - standard federal taxation on GST value
- British Columbia provincial liquor mark-up (the lower of $17 per litre or 17% of the GST value grossed up by 85%) - totally useless tax
- British Columbia provincial liquor sales tax (10%)
So why am I so pissed? Let’s break it down using a US$25 bottle of wine (note this value includes the tax you paid in the state it was purchased which in itself is b.s. because you are paying tax on tax, but I digress):
First we need to convert to Canadian dollars. On the day I travelled it was 1.1168 which makes our bottle $27.92.
The excise tax - this one I’m ok with. The products weren’t made in Canada and the rate was reasonable.
excise tax = .750ml * $0.62/litre = $0.47
The GST is calculated on the value of the wine plus the excise tax - think of this as the fair market value of the product had it been produced in Canada.
GST = $27.92 original cost + $0.47 excise tax = GST value * 5% = $1.42
Again, this is reasonable.
Now let’s get to the root of my beef: the BC provincial mark-up. Please, to appreciate my rant, check out Appendix B on page 9 of this CBSA document that outlines all the provincial/territory liquor mark-ups in Canada.
Uhm, BC, are you freakin’ smoking crack?!?!?
First you are going to charge us 17% but not on the GST value ($28.39) nooooooo you need to mark-up the GST value 85% ($52.52) and take 17% of that! W.T.F.!! Don’t even get me started on the 150% mark-up applied on spirits (yup, left the bottle of Hangar One at the tasting room in Alameda). Oh yes, I saw your kind gesture, BC taxation department, that there is a cap of $17 per litre but when the bottle only cost approx. $28 to start with you can imagine why I lack empathy. And why 17%? why not our standard liquor BC PST rate of 10%? Just for kicks and giggles? OK. Breathe.
BC provincial liquor mark-up fee = lower of $17/litre (0.75 * $17 = $12.75) or the calculated markup ($28.39 * 1.85 * 17% = $8.93)
Oh but we aren’t done yet are we greedy BC taxation department. No, that was just the “mark-up fee”. Now we actually pay the provincial sales tax which is not actually on the GST value (e.g. market value) nooooo it is the GST value plus the mark-up fee (yup, more tax on tax - LUV this system)!
BC provincial sales tax = [ $28.39 (GST value) + $8.93 (mark-up) ] * 10% (finally, our standard BC liquor tax) = $3.73
So, in our example we will pay $14.55 in tax on a $28 bottle of wine (52%). But of all that good tax collected 87% is going to the province of British Columbia. Could this be considered usury? And, happy BC taxation department, exactly which program is this “sin tax” going to? Just have it out for people who like a good wine so much they want to bring a little home? Arrrrrgggggg!
So, yes, the first person who runs on a political platform to remove the liquor mark-up fee is going to get my vote.
Thank you for putting up with my whining. Time to open that Panther Creek, Freedom Hill, Pinot Noir that cost an additional $20.59/bottle in tax for the luxury of enjoying it at my home here in BC. For the record, it is worth every extra cent thanks to the talents of Michael Stevenson.
Cheers!
29 comments ↓
Having been stung by this several times, I couldn’t agree more Wendy. This issue crosses political boundaries - I too would vote for any political party that promises to remove the mark-up. Particularly on wine. Let’s form a lobby group for the next provincial election.
I also can’t believe this ridiculous tax. I picked up 2 bottles of of wine 750 ml x 2 = 1.5 litres. Here’s the breakdown. $29.23 value for duty. Excise tax =.93 Gst = $1.51 Pst = $5.57 and for good measure add on $25.20 for provincial mark-up fee. The wineries in BC are not hurting. This is a campbell govt cash cow. As far as I am concerned I don’t have any problems with all of the taxes except the absurd provinical mark-up. So, I think I am going to send the campbell govt a bill for fuel, vehicle usage and my time to bring the wine across the border so they could charge me. Makes about as much sense as their fee. Have another gin Gordon.
I can top that! I was recently the Victim of the Obscene 150% Liquor mark up Scam on some Flavored Vodka and a bottle of Baileys! My Flight home from Sydney Australia MUST connect through Vancouver to get to Calgary ( or anywhere else in Canada) and You Must go through Customs and Declare Your purchases in BC. When I pointed out that I was fully aware of the DUTY required to bring excess alcohol into Canada I was told that I was Stupid for not doing my research and I should have checked Their Website to make myself aware that BC had Higher Duty. I was talked to like a cross between a Criminal (even thought I declared) and a Retard because I had not found out about their Extortion Practices prior to Landing. The entire time the cashier insisting it is DUTY! I opted to Smash or dump out the excess bottles and was told I could not do this. I would still be charged for them and probably be fined or arrested as well. My only option was to fill out Their form to abandon it to which I replied, ” No Thank You, If you think I am going to leave it here for you F*$&ing thieves to add to your Christmas Staff Party or Re-sell in the BC Shop, You are Nucking Futs!!!”
I paid the extra $150. to bring in my extra 2.8L and left a little better educated and reminded as to why I left this Province 20 years ago…
It’s NOT Duty You Stupid Cow! It’s a Mark Up Fee!!! I hope that woman has a miserable New Year! Me’ I’ll be drinking $70. bottles of Vodka and recovering on the 1st with Coffee and $83. Baileys…
Happy New Years!
PS.
I found this site while STILL trying to find something online that would have informed me of the Bring Cash Extortion Practices of the Provincial Government…
Still no luck on that!
This is the only site I’ve found online that clearly explains the charges. The BC Gov’t obviously want to keep it as obscured as possible so they can continue to rip off people bringing back alcohol.
Thanks for the warning. If you run for office you’ve got my vote.
Thanks for the info. Impossible to find otherwise and just so you know, this tax scheme is directly attributable to the BC Wine industry, which lobbied heavily for it as a form of protection. You see, they get to charge the ‘competitive’ big prices but it’s mostly profit to them.
When everything fails is up to the individual to make his own judgment. And be responsible for it. This is just a rare example of working experience put into action.
Brent - that is exactly the way I felt. The border guard seemed really interested in my flavored vodka and rum, and seemed like he was pulling numbers out of his arse. He seemed really surprised that I paid this ridiculous fee - which there is no mention of on the Government of Canada website in the section on what is allowed back - there is plenty of information on the Duty and GST/HST - which I had no problem paying, but this fee is absolutely ridiculous - is it even legal????? It certainly isn’t anywhere on the website, as I research everything before I go somewhere….
I refused to leave it there so that they could stock their liquor cabinets for free - because we all know that there is no way that the booze that gets left behind gets thrown out…. We aren’t that stupid. I asked him if there was a bathroom where I could pour the liquor down the drain - If I ain’t getting it, you ain’t getting it. He said no (with a smirk on his face) - so I paid the fees and took my booze.
I just got off the phone with customs at the LDB. I told her the wine I was bringing in was $17 a bottle. She said the rough math was 115% of what ever the price was in Can $, so about $20 per bottle. I have two cases I want to bring back. Something I cannot get in B.C., having to pay twice the price for that opportunity is bull s*it
just wondering what it cost to bring a 24 pack of beer at $19/24
I too found this site by accident after 10 minutes of trying to find some answers for some wine I want to bring from California. What a cash cow and how unbelievably arrogant the gov’t of B.C. Is To withhold that information from their websites. Election platform? Yes but how about if we stop supporting B.C. Wineries?maybe that would make them be a little fairer
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Try well over 90% at the border. I came home yeterday and declared wine with a value of $200 and had to pay $186 duty on it. Ludicrous!
I bought a $29.65 cent bottle of Cruzan rum in Montana. I live in Alberta, and have an AB license/car/address/etc. The BC government charged me $30 to bring it over the border, that’s over 100% tax.
If i had crossed back into AB, it would have cost me $7, tops.
I grew up in BC, and I love it there, but c’mon!
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