Federal Excise Duty Rate Change

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To: Industry Associations

Re: Federal Excise Duty Rate Change

As you may be aware, the federal government announced the excise duty rate change that will take effect on April 1, 2019. The new excise rates are listed in the Appendix (linked below). The rates of excise duty are adjusted annually to the Consumer Price Index on April 1 of every year, and the next inflationary rate adjustment will be on April 1, 2020.

Please feel free to pass this letter on to your industry association memberships. The BC Liquor Distribution Branch (LDB) has also posted this information on its Wholesale website and Vendor website, and is communicating with vendors, suppliers and customers.

Information for vendors and suppliers:

  • In order to provide additional time for our vendors and suppliers to react to any wholesale price changes for Period 1 for fiscal 2019/20 (April 2019), the BC Liquor Distribution Branch (LDB) will be reopening and extending the price change deadline for Period 1 to end-of-day on February 25, 2019.
  • The LDB’s pricing calculators have been updated and are available for use.
  • The LDB’s minimum wholesale price has not changed due to the increase in excise duty.
  • On March 8, 2019, the wholesale price list reflecting the excise duty-increase that will be available for vendors to view.
  • Any price changes submitted by end-of-day on February 25, 2019 will take effect for Period 1, which is effective April 1, 2019.

Information for wholesale customers:

  • B.C.’s wholesale prices will be effective on April 1, 2019 to reflect the excise duty increase.
  • The new wholesale prices will be available on March 8, 2019.

Information for hospitality customers:

  • On March 21, the retail price list for Period 1 will be released. This date has been postponed (from March 18, 2019) to allow time for vendors to react to the excise duty increase.
  • The retail price list for Period 1 will still come into effect on April 1, 2019.

You can read more about the changes here.

 

Thank you for your attention to this matter.

Roger Bissoondatt

Chief Financial Officer

BC Liquor Distribution Branch

2625 Rupert Street, Vancouver, British Columbia, V5M 3T5 

t  604.252.3000 f 604.252.3464 w www.bcldb.com

 

APPENDIX> Federal Excise Duty Rate Changes 2019