Alberta's hospitality and retail sectors are mounting a unified campaign against a provincial wine tax they argue is damaging business and undermining the province's historically competitive liquor market.
Industry Leaders Demand Tax Repeal
Wineries, retailers, and restaurant owners are urgently calling on the Alberta government to scrap the ad valorem wine tax introduced last year. The tax, which took effect on April 1, 2025, adds a percentage-based levy on top of the existing flat tax, disproportionately affecting higher-priced bottles.
Mark von Schellwitz, the outgoing Western Canada vice-president for Restaurants Canada, voiced strong criticism during a press conference at Metrovino Fine Wines in Calgary on Wednesday, January 14, 2026. "This complicated new price scenario... is totally counter to Alberta’s very successful liquor tax markup system, which has been a cornerstone of Alberta’s competitive, best-in-class liquor model for 30 years," von Schellwitz stated.
How the New Tax Structure Works
The tiered tax applies an additional:
- 5% on wines priced between $15 and $20 per litre.
- 10% on wines between $20 and $25 per litre.
- 15% on wines over $25 per litre.
Given a standard 750 ml bottle, any wine bottle costing more than $11.25 is subject to the new ad valorem charge. Industry representatives argue this complexity is a departure from Alberta's traditionally straightforward approach.
"Restaurants Canada and thousands of licensed Alberta restaurants are asking the Alberta government to scrap this complicated and punitive ad valorem tax and return to a simple, broad-based liquor tax — flat tax — to meet their liquor revenue needs," von Schellwitz explained.
A Sector Under Severe Pressure
The tax adds another burden to a restaurant industry still recovering from the pandemic's impact. Von Schellwitz highlighted a "double whammy" of soaring operating costs and declining sales as consumers cut back spending.
The situation is dire for many businesses. 41% of Restaurants Canada's members are currently losing money or barely breaking even, a stark increase from the 12% reported before the pandemic. "This is not sustainable in the long term," he warned.
Von Schellwitz questioned the policy's logic, asking, "It doesn't make any sense. Why are we taking Alberta's competitive liquor model and making it less competitive?" He noted that despite raising concerns with the provincial government, no moves toward a resolution have been made.
Government Defends Tax Policy
In a statement issued on Wednesday, Minister of Service Alberta and Red Tape Reduction Dale Nally defended the tax. Nally asserted that Alberta remains "the most tax-friendly and open and free jurisdiction in Canada for alcohol, including wine."
The minister stated that the ad valorem tax applies to roughly 16% of wines sold in the province. He provided a comparison, noting that after taxes, a $20 bottle of wine at invoice price can be up to 86% more expensive in other provinces compared to Alberta.
Despite the government's stance, the coalition of Alberta businesses continues to push for a repeal, framing the tax as a threat to jobs, competitiveness, and the vitality of the province's valued hospitality sector.
