Spirits

Posted December 16, 2015

Update on new Microdistillers Act Bill 157

distillers-actVia Ontario Craft Distillers Association

BILL 157 “The Microdistillers Act” has formally been introduced to the Legislative Assembly of Ontario by Hon. Tim Hudak, which saw its first reading December 10th. Bill 157, The Microdistillers Act, would equalize the taxes that microdistillers pay under the Liquor Control Act and the Liquor License Act to that which microbreweries pay, and would have a significant impact on Ontario’s microdistilleries.

Current taxation of microdistilleries is a huge detriment to sustainable business, and has created a high barrier to entry for individuals looking to succeed in this business. Microdistilleries are creating innovative, locally produced premium spirits from Ontario grains and botanical products. They are contributing to the local economy through job creation, increased opportunities to showcase local products at bars and restaurants, and new uses for Ontario’s award-winning agricultural products.

With the passage of this bill, microdistilleries would no longer be subjected to crippling taxation on the sale of their products, and would have lower operating costs. This alteration to the LCBO taxation structure has already been in place for microbreweries for some time, and this bill would introduce parity to the microdistilling community in Ontario.

As you can imagine, passing this bill would provide a significant boost to capital resources in both the short, and long term, and would allow these businesses to expand, create more jobs, and provide even more innovative products to share with Ontario and the world. Similar amendments to the tax structure in other Provinces have already occurred, and have helped British Columbia create a thriving industry.

The Ontario Craft Distillers Association (OCDA) are excited that the Bill has been introduced and hope for it’s speedy passage. Here’s to local, artisan and craft distilleries in Ontario. We raise a glass to the Hon. Tim Hudak.

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