For any inquiries related to this matter from guests or press, please email Ron at ron@lightningrockwinery.com .
A recent BIV news article highlights how Alberta’s tax increase raises the cost of BC wines sold to consumers in Alberta. Not only does this new system interfere with the promise of easy direct-to-consumer shipping between Alberta and BC, but it also imposes an additional financial burden on producers and wine lovers. In some cases, the combined taxes in Alberta could now exceed what we would face exporting our wines to the United States. This is surprising and disappointing for those who have long championed the idea of buying local.
At Lightning Rock, our aim is to practice minimal intervention and sustainable winemaking. We believe that Canadians should be able to enjoy Canadian wine regardless of which province they call home. That is why our owner, Ron, penned a letter to Premier Danielle Smith asking her to reconsider these punitive new taxes. We remain hopeful that open communication will help maintain fair access to local wines. Wine should bring people together, not keep us apart.
Below is the full text of Ron’s letter, which we have also sent to the Premier.
PDF Version of this letter for Download
Lightning Rock Winery
Summerland, BC
March 24, 2025
The Honourable Danielle Smith
Premier of Alberta
307 Legislature Building
10800 – 97 Avenue
Edmonton, AB T5K 2B6
Subject: Alberta Wine Tax Hike – A Tax on Canadian Free Trade
Dear Premier Smith,
As a BC winery owner who has long respected Alberta’s leadership in free markets and open trade, I was deeply disappointed by your government’s recent decision to raise the wine markup from $3.91 to $4.11 per litre and impose a new ad valorem tax of up to 15% on the value of wine sold in Alberta.
After more than a year of negotiations between our provinces, January 2025 finally brought a cooperative agreement that allowed direct-to-consumer wine shipping between BC and Alberta. In July 2024, you called that deal a win for Albertans and British Columbians, promising “more market access for businesses, more prosperity for Albertans and British Columbians.” Now, just months later, these gains are being undone by a tax that targets Canadian wine under the guise of fairness.
You built your public leadership on reducing red tape and fighting back against foreign tariffs and Ottawa overreach. On March 5, 2025, you declared your commitment to “break down restrictive provincial trade barriers” and ensure the “unrestricted movement of goods” across Canada. Yet your government’s new wine markup system does the opposite, raising costs on Canadian wine, disproportionately affecting smaller BC producers like us, and placing new obstacles in the way of interprovincial trade.
You have spoken powerfully against the federal carbon tax, calling it “unfair,” and said that tax increases “punish” ordinary Canadians. That same logic applies here. These taxes are layered on top of wine already subject to excise, GST, and shipping fees. The impact is not just on wineries but\ also on Alberta consumers, who now face higher prices and fewer choices.
Even more concerning is that under the new ad valorem system, many of our wines now face a higher effective tax in Alberta than they would if exported to the United States. Under current U.S. policy, Canadian wine is subject to a 25% tariff. Yet with Alberta’s new $4.11 per litre markup and an ad valorem tax of up to 15% on higher-priced bottles, the combined tax burden in Alberta now exceeds 26-28% for many wines. That means Alberta’s tax regime is more punitive than Trump-era tariffs.
The new taxes apply only to wine over $15, sparing cheaper imported wines but heavily affecting BC wines, most of which are in that higher price category. The agreement between the provinces took months to negotiate and was intended as a one-year experiment. Yet only three months in, your government has imposed a tax that makes BC wines significantly more expensive in Alberta than they are in British Columbia.
As a matter of national pride, we need a national market for our wines.
Premier Smith, we urge you to live up to your words and repeal this damaging tax. Let Alberta once again lead the way in dismantling trade barriers, not building them. Let us work together across provincial lines to make Canadian wine more accessible, more affordable, and more celebrated by Canadians from coast to coast.
Sincerely,
Ron Kubek
Owner & CEO, Lightning Rock Winery
Summerland, BC
We share this letter because we believe open dialogue is essential in addressing these policy issues. At Lightning Rock Winery, our core values include community, sustainability, and the joy of bringing people together to enjoy quality wine. We are hopeful that these same values will guide our leaders to revisit and rethink Alberta’s new tax laws.
Until then, we thank everyone who continues to support local wineries. Every bottle you purchase is a direct investment in the families and farms that keep our wine industry vibrant and true to its roots.
We Would Love to Hear from You
Let’s keep the conversation going. Together, we can work toward a vision of Canada that embraces local growers and producers, ensuring that everyone has a chance to enjoy the best of our regions without unnecessary obstacles.
Cheers from all of us at Lightning Rock Winery, and thank you for standing with us as we navigate these changes.