B.C.'s craft brewers pitch tax reforms to help already shrinking industry

Craft brewers in British Columbia are rallying behind a campaign demanding changes to how beer producers are taxed.

Called "Protect BC Craft Beer," the 219-member B.C. Craft Brewers Guild (BCCBG) is pitching reforms to the provincial tax regime that will, in its words, "stop favouring foreign-owned beer conglomerates" while reducing the tax burden on small, local producers. 

The executive director of BCCBG says the change is needed to stop the shrinking industry of craft brewing from contracting even faster. 

"Without change, many of our members won't make it, some have already closed their doors," said Ken Beattie. "This reform isn't just about fairness; it's about survival."

Beattie said this year alone, more than 20 craft breweries in the province have been forced to close their doors.

BCCBG says that under the province's tax structure, large foreign-owned beer conglomerates have received more than $9 million in tax rebates annually under a regime that hasn't been updated in almost 10 years.

It says large beer companies that produce above a certain volume pay a flat tax rate, where as small craft brewers "get penalized for success" with a tax rate that goes up as production increases. 

The guild says its proposal is revenue neutral for government and could lead to savings of over $16 million dollars for B.C. craft breweries, money which could in turn go into local jobs and dealing with U.S. tariffs. 

CBC reached out the province for comment but did not hear back by deadline.

The co-founder of Main St. Brewing in Vancouver said other provinces are stepping up to support the sector.

 "We're simply asking B.C. to do the same, to recognize the value of what we bring to our communities and help us survive," said Cameron Forsyth.

Beattie told CBC craft brewers in Alberta are taxed at a rate four-times lower than in B.C.

"If you produce 2,000 hectolitres — which is the average size brewery in B.C. — you pay $80,000 in a markup. [In Alberta] they would pay $20,000 in markup," he said.