EDMONTON — Alberta’s government is walking back a wine tax based on the value of a bottle after getting an earful from retailers and the hospitality industry.

Budget 2025 introduced ad valorem markup rates on wine, but industry feedback highlighted that the approach reduced transparency and created business uncertainty.

Last month, Wine Growers British Columbia called it a “blatant tax grab” at a time of boosting interprovincial trade in the face of U.S. tariff threats.

As part of the latest budget introduced last week, the Alberta government is now eliminating the ad valorem model, and instead is to increase the standard volume-based markup for wine products by 58 cents per litre.

Service Alberta Minister Dale Nally says the ad valorem markup will be removed April 1, but it only applied to about 16 per cent of wines Albertans were buying.

He says moving to a simpler system helps support small businesses, and the province has the most open, competitive and tax-friendly liquor market in the country.

This report by The Canadian Press was first published March 5, 2026.

The Canadian Press