WINNIPEG, MB – The Manitoba Government has announced changes to the markup framework for alcohol producers that will reduce the amount of excise tax paid by many craft breweries in the province.
Currently, the taxation structure for Manitoba breweries has four tiers that are based on annual production. The lowest tier with fees of approximately 10 cents per litre applies to those who brew 18,000 hectolitres or less per year, with the second tier for 18,001 and 25,000 hectolitres having a cost to breweries of 30 cents per litre.
The second tier will be eliminated as of July 1st, 2023, and the 10 cents per litre surcharge will apply to all breweries producing up to 25,000 hectolitres annually. Above the 25,000 hectolitres threshold, the two higher tiers will also be combined into one, with a 46 cents per litre fee to be paid to the government.
In a news statement, a representative of Manitoba Liquor and Lotteries indicated that this restructuring as well as similar changes for other beverage alcohol markups will see rates reduced for 32 of of the 50 small liquor manufacturers in Manitoba.