Nanny state: the LCBO knows best (Image: Derek Purdy)
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]
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.
May 23, 2010 at 1:15 pm | by FrancoisPrivatize the LCBO all you want; as long as the government imposes an additional sin tax. Alcohol and cigarettes should be more expensive, not cheaper.
June 16, 2010 at 2:25 pm | by Ian BoydTo 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.
June 30, 2010 at 2:14 pm | by MakerHELLO 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”?
July 3, 2010 at 8:06 am | by PaulOh 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!
September 17, 2010 at 4:34 pm | by LobbingWhat’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!!!
September 29, 2010 at 8:15 pm | by LobbyWhy 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.
April 27, 2012 at 10:12 am | by LCBO-joke