As the Ford government continues its modernization of the LCBO — including tax breaks and reductions in markups — the amount of money flowing into public coffers from alcohol sales is dropping significantly.
According to the 2026 budget, Ontario will spend $200 million to reduce the markup for products at the LCBO, alongside reducing taxes for local producers.
“Ontario producers are some of the highest taxed people in all of Canada,” Finance Minister Peter Bethlenfalvy explained on Thursday.
“It was not a level playing field. When you modernize a system, one of our principles has been to try and have a level playing field, reduce the tax and market, which we’re doing, and allow fundamentally competition.”
The moves, however, substantially reduce the money flowing into the treasury from alcohol sales and taxes at a time when people are choosing to drink less anyway.
Figures included in the 2026 budget show LCBO revenue for the 2025-26 year will be $1.7 billion.
That’s even lower than the $1.9 billion government had predicted in its 2025 budget, which showed revenue at the provincial liquor store falling below $2 billion for the first time in a decade.
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It’s also a sharp drop on 10 years ago, when the LCBO brought in $2.4 billion in revenue. Adjusted for inflation, that’s equivalent of $3.1 billion in 2026.
The government is projecting LCBO revenue will tick up marginally next year to $1.9 billion.
“Our LCBO revenues are just under $2 billion, and I expect them to grow from the numbers that we posted,” Bethlenfalvy said.
“But the world is changing as well in alcohol. Many are consuming less, young people are consuming less, those who are consuming are shifting from spirits to ready-to-drink, so consumption patterns are changing.”
Overall alcohol tax is down substantially, too. The treasury will take in just $262 million next year from beer, wine and spirits sales — a dramatic drop from the $593 million it took in 2023-24.
Ontario NDP Leader Marit Stiles said the government should stop making changes to the provincial alcohol retailer.
“This government continues to tinker with the LCBO, something that works well and provides important revenue for health care in this province. And that’s very concerning,” she said
“Good, unionized jobs and a business that works very well for the people of Ontario.”
Have a quick look at real estate issues in Vancouver streets…weed became legal and they are now losing Corporate level money!.
How much is this theft related? They need to allow security to do their jobs.
When you’re struggling to buy groceries and gasoline, alcohol shows up pretty far down the list
Another disasterous move by mini t rump dug furd and his economically challeged idiot mps.
But no one mentions how expensive our alcohol is, so they make less money but the customers are paying less which is good for us. Happy people are drinking less and LCBO is making less, they’ve been ripping us off for years.
People are also drinking less. Nothing wrong with coming to 2026 with Ontario outdated laws. Opening the market was the smart thing to do and hopefully continues. Should open liquor to be sold as well, let lcbo have a little competition and more choices for the consumer. Time to increase or get rid of last call. We’re all adults here. Big government gotta control everything.
Don’t worry, they will just tax the consumer harder to make up for the losses.