Helping Create New Jobs In Ontario
From wine-spirits.net
McGuinty Government lowering LCBO mark-up on spirits sold at land-based duty free stores
Ontario is lowering the LCBO’s mark-up on spirits, low-alcohol spirits and brandy sold in land-based duty free stores to 30 per cent from 50 per cent of the landed cost.
The changes will improve the competitiveness of land-based duty free stores, allowing them to create jobs.
The mark-up reduction is expected to create more than 200 new full-time jobs for Ontarians. It builds on changes made in 2008, when the LCBO lowered the mark-up on imported wine and beer as well as coolers sold at land-based duty free stores.
The land-based duty free stores benefiting from this reduction are those located in Fort Erie (Peace Bridge), Niagara Bridge, Queenston-Lewiston Bridge, Bluewater (Sarnia), Windsor-Ambassador Bridge, Windsor-Detroit Tunnel, Johnstown (east of Brockville), Lansdowne (Thousand Islands), Sault Ste. Marie, and Fort Frances. The change will also apply to airport duty-free stores in Hamilton, Thunder Bay and Ottawa.
The mark-up for spirits sold at LCBO stores will also be lowered to create new economic opportunities for Ontario’s distillers while keeping price consistent to consumers.
Both mark-up reductions will come into effect October 10, 2011.
QUICK FACTS
- Economic modelling done by Econometric Research Limited and provided to the government projects that the changes to the markup at land-based duty free stores will create 220 direct and indirect full-time jobs.
- Sales at Ontario’s land-based duty free stores are made to people leaving Canada for America.
- Spirits companies in Ontario provide employment for over 1,300 people directly and another 4,700 in related industries.
- Ontario is the centre of the spirits industry in Canada and accounts for 75 per cent of Canadian spirits exports to more than 160 countries around the world.
- A mark-up reduction is in line with other provinces such as the British Columbia Liquor Distribution Branch, which recently reduced the duty free mark-up rates for spirits, wine, cider and coolers.
- Ontario’s Tax Plan for Jobs and Growth is providing the industry with an annual benefit of up to $5 million.
