.
Search
Email this articleE-mail this story  Discuss this articleWrite letter to editor  Discuss this articleOrder a classified ad
Beating the tax

'Sin' tax makes liquor sellers rush to the warehouse before April 1

Kathleen Lippa
Northern News Services

Yellowknife (Apr 02/03) - People who sell liquor in Yellowknife stocked up before the 'sin' tax on liquor kicked in April 1.

"They didn't clean us out. But we had some licencees that were buying a little extra," said Ray Green, warehouse manager in Yellowknife.

The liquor warehouse in Yellowknife supplies all the licenced establishments and both liquor stores in Yellowknife.

Edward Eggenberger, manager of Yellowknife's liquor store on 49th St. said he stocked up before April 1.

"It's Yellowknife, so we set our own prices," he said Tuesday.

Under the new tax hike, at Eggenberger's store spirits are going up $2.25 for a 750 ml bottle, wine will be up 70 cents per 750 ml bottle, and beer is going up approximately 45 cents per six pack.

Meanwhile, there has been a mixed reaction to the tax from bar owners.

James Hodgson, manager of the Black Knight Pub stocked up. But Bob Ross, manager/owner of Jose Loco's didn't.

"I'm just started up new," said Ross. "I bought some product like I normally do."

The NWT Liquor Commission has increased mark ups by about 10 per cent on liquor products.

The higher mark ups will raise liquor prices by about seven per cent for spirits, four per cent for beer, and five per cent for wine.

'Sin taxes also apply to cigarettes.

Announced as part of the GNWT's Healthy Lifestyles strategy, the GNWT will take in an extra $4 million for this coming fiscal year due to the increase, said deputy minister of finance, Margaret Melhorn.

"There has been research that indicated consumption is related to price," said Melhorn.

The last time the GNWT marked up tobacco was a year ago, Melhorn said. And September 1999 was the last time liquor tax was increased.

"We are observing long-term declines in per capita consumption in alcohol and tobacco," Melhorn said. "But," she added, "you can't point to a specific price increase and say 'well, it dropped.' People don't quit that easily."