Quebec distillers: the government promises relief

The Minister of Finance is expected to introduce a bill soon that will allow regulatory relief to help local alcohol producers, who are on the brink.

Quebec distillers: the government promises relief

The Minister of Finance is expected to introduce a bill soon that will allow regulatory relief to help local alcohol producers, who are on the brink.

• Read also: Taxation: microdistilleries threatened with closure

On Tuesday, the Union québécoise des microdistilleries (UQDM) sounded the alarm by arguing that several Quebec producers will have to go bankrupt before the end of the summer if nothing moves.

Two out of three producers claim to be in deficit, in particular because they have to pay a markup of more than 50% of the selling price of the bottle at the SAQ, even if the bottle is sold at the place of manufacture.

The microdistilleries offered to pay the same tax amounts to the Quebec government, but without dealing with an intermediary. They believe it would allow local producers to survive and ensure the integrity of state coffers.

In the office of the Minister of Finance, it is argued that the mark-up for distillers has already been reduced during on-site sales, without being able to explain by what proportion.

"Changing the increase could go against trade agreements and jeopardize our income and our public services", underlines Fanny Beaudry-Campeau, spokesperson for the cabinet.

She added that the government would soon table a bill that will allow regulatory relief to help local alcohol producers.

The Journal tried to find out more about these reliefs, in vain.

The SAQ singled out

The UMDQ also pointed the finger at the SAQ to denounce the situation. The organization believes that it does not have to pay a markup when selling the property, as it does not intervene in any way. Tablet seats are also becoming less and less available, which directly affects profits.

The Company defends itself through the trade agreements to which it is bound.

“One of the fundamental requirements of these agreements is the principle of national treatment, which obliges the SAQ to apply an equal increase for products in the same category, regardless of their origin,” explains Clémence Beaulieu-Gendron, spokesperson. at the SAQ.

The spokesperson adds that the decision to allow the spirits to be sold on the premises of manufacture was in order to provide an additional marketing channel.

“And not to limit the action of the SAQ in the control of products or to deprive the government of the revenues it collects in order to finance services to the population,” she concludes.

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