Effective January 1, Ontario reduced the LCBO’s wholesale alcohol prices for bars and restaurants and allows curbside pickup of beer, wine and cider at licensed grocery stores, as well as the freezing of the basic tax rate on beer.
A government announcement says the measure aims to support licensed bars, restaurants and other businesses by saving them 20% compared to retail prices.
These savings will be achieved by increasing the LCBO liquor licensee’s alcohol purchase discount to 10% and eliminating the 6% markup on cider, wine and spirits. The government notes that, combined with the HST clawback and container deposit fees, licensees will actually pay 20% less than retail prices for alcohol purchased wholesale from the LCBO.
He adds that the change will provide around $ 60 million in annual support for restaurants, bars and other businesses.
Base beer tax rates that were scheduled to be indexed to inflation on March 1, 2022 were frozen until the same date in 2023 to help beer and craft beer brewers recover and grow .
A final measure also sees the extension of alcohol retail hours from 7 a.m. to 11 p.m., temporarily enacted in March 2020 in response to COVID-19, made permanent.
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The government says the new flexibilities will build on its previous measures on alcohol during the pandemic, which included increasing sales of alcoholic beverages to more retail outlets across Ontario, permanently enabling licensed restaurants and bars to include alcohol with food as part of a take-out or delivery order, and give licensed restaurants, bars and retailers more flexibility in the use of delivery services. ‘alcohol.