The B.C. government has announced a business break for craft breweries.
Effective July 3, the mark-up rate for small and regional breweries will be reduced by approximately 25 per cent per litre.
The “mark-up” is a fee paid to the B.C. Liquor Distribution Branch, dependant on a brewery’s production value.
The government says this will leave $10 million more annually with brewery owners to grow their businesses.
A second change involves the way the B.C. Liquor Distribution Branch collects fees and GST from small and regional breweries.
In the past, breweries would have to remit all of their sales revenue to the government and wait several weeks for the profits to be returned, minus the mark-up, recycling fees and GST.
But soon the breweries will only have to submit what is actually owed to the B.C. Liquor Branch, which should improve their cash flow.
“This significant change to mark-up rates helps ensure the continued growth of the industry and provide more high-quality choices for local consumers,” Penticton MLA Dan Ashton said. “With four microbreweries established here in Penticton and potentially more on the way, this announcement is great news for this thriving industry,”
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