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Some Canadian winemakers say the new federal program will mitigate puncture wounds with a 4% tax refund

Recent Federal tax refunds on domestic brands have raised Canadian wine prices by 4%, but some winemakers are backed by new programs Designed to help people in the industry.

Government programs may mean that consumers do not face an immediate rise in wine prices, and owners of Cooper's Hawk Vineyards near Harlow, Ontario. Says Tom O'Brien.

Starting July 1, Ottawa has abolished the excise tax exemption on Canadian wines after resolving a trade dispute with Australia. 

In response, Agriculture and Agri-Fan has a new support program , and is short-term for struggling wineries. Provide financial support. 118} is based on the production of liters of the winery of the previous year.

According to O'Brien, the new program is not a rebate, the winery has to pay excises —rather, "a subsidy to the producer."

"Most people don't get it because they can go to LCBO and buy imported wine for $ 10. In fact, LCBO pays $ 3.50. Labor costs and marketing committee. You can't even make wine for $ 3.50, let alone the whole bottle, for the meeting. "

Cooper's Hawk Vineyards President and Co-owner Tom O'Brien, CBC Talk to Windsor Morning host Nav Nanwa about the new wine tax.

According to O'Brien, the new program may mean that consumers don't have to pay any more — at least not yet. 

"We are confident that [the program] will recover our costs for at least the next two years," he said.

"I think it's still expected that consumers won't have to pay until they have to absorb the excise tax of 51 cents per bottle."

Program The application for the first phase of is started on Monday and lasts for 6 weeks at . Under that, $ 166.2 million ($ 83.2 million from 2022 to 2023 and $ 83 million from 2023 to 2024) is being offered to the winery.

Wineries with packaged wine sales of less than $ 50,000 are not subject to excise tax payments and are not eligible to apply for the Canadian Department of Agriculture program, which is scheduled to end in March. 31st, 2024.

A spokesperson for Agriculture and Agriculture Minister Marie-Claude Bibaud said in an email to the CBC that two wineries have already submitted applications for a new support program. Said. Currently, she has no plans for a program beyond 2024, she added. The

Agriculture and Agri-Food Canada (AAFC) website has provided approximately $ support for market development and research in the Canadian wine industry since 2016. There are about 800 licenses. The Canadian winery has in British Columbia, Ontario, Quebec and Nova Scotia, and employment in the industry increased by about 70% between 2015 and 2020 to about 8,500 employees. It has become. 

AAFC also states that manufacturing sales increased from $ 1.1 billion in 2015 to $ 2.1 billion in 2021. 138} Canadian Winemaker (WGC). There are members of state industry associations, international industry associations, liquor committees and more. 

According to Taylor, Canada produces % of the world's wines, and is the eighth largest wine seller in quantity and the fifth largest wine seller in value. It's a market.

The grape berries used to make wine are on display from the Okanagan Valley, British Columbia. Winemakers are now able to sign up for a new Agri-Fan program that provides short-term financial support to wineries that is struggling with. (Christian Amundson / CBC)

WGC is aware of the competition that domestic producers face with overseas producers, Taylor said.

"They can't produce wine at the prices that imported wine is sold in Canada," he said.

The government actually knows that a huge amount of work is available in the industry when producing wine, and recognizes that it is a great economic impetus.-Rob Taylor, Canadian Winemaker

"We were very pleased last week when the federal government announced a new wine sector support program to address many of these challenges. Was, "said Taylor. .. "The excise tax couldn't have come at a worse time, but it's one of many different factors affecting the wine industry."

O'Brien , Ottawa We hope to provide similar support to other wine-producing countries.

"All the major wine producers in the world — France, Australia, New Zealand — The agricultural industry has huge grants and support," he said. Available in the industry, they have found it to be a great economic impetus.

Taylor calls wine "Canada's most value-added produce." Economic benefits over wine production.