NLIS 3
March 21, 2005
(Finance)
Licensee levy to be
phased out
Government will phase-out the
licensee levy currently being charged to businesses which are
licensed to sell liquor products. The announcement was made today by
Minister of Finance and President of Treasury, Loyola Sullivan, as
part of Budget 2005.
�This levy affects approximately 1,600 licensed establishments
throughout the province.� said Minister Sullivan. �Operators of
licensed establishments have long been calling on government to
eliminate the levy, saying it was unjust to be charging operators a
premium over and above normal retail prices on liquor products. We
have listened to those concerns, and we are now taking action to
correct the situation.�
Started in the 1960s, the levy is charged to bars, restaurants, and
other establishments which are licensed to sell liquor products to
individuals. These businesses are required to pay a premium over and
above the retail price paid by individuals. This premium is a 12 per
cent liquor licensee levy on the purchase price of spirits and wines
and a 60 cent per dozen levy for beer.
Beginning April 1, 2005, the licensee levy will be reduced by three
per cent, and further three per cent reductions will occur annually
for each of the next three years. Similarly, the 60 cent per dozen
levy on beer will be eliminated in equal amounts over four years. In
eliminating the levy, the province will lose approximately $675,000
in revenue this year.
�Government said it would foster an appropriate business climate in
order to grow the economy and stimulate job creation. The liquor
licensee levy is a deterrent to the growth of hospitality industry,
one of our growth sectors, and in keeping with our commitment, we
are eliminating this levy,� said Minister Sullivan.
Media contact: Diane Keough, Communications, (709) 729-6830,
685-4401
2005 03 21
2:20 p.m |