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


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement