A Win for Alberta Restaurants: Government Reverses Wine Tax Change

In today’s Provincial Budget, the Government of Alberta announced it will replace the ad valorem tax on wine introduced in April 2025, returning to a simpler, flat-tax model.

Since the ad valorem tax was first announced, the Alberta Hospitality Association (AHA) has worked closely with our members and industry partners to clearly communicate how this complicated tax structure was creating real challenges for restaurants across the province. The tax disproportionately impacted wine pricing, added administrative complexity, and made it harder for operators to offer diverse wine lists at accessible price points for guests.

We are pleased to see the Government of Alberta respond to these concerns by reinstating a flat tax on wine effective April 1. The new structure will apply an increase of approximately $0.44 per bottle on all wines, generating needed provincial revenue while maintaining predictability and fairness for hospitality operators.

This change helps ensure restaurants can continue to offer quality wine selections at reasonable prices, supports consumer choice, and removes unnecessary complexity from an already challenging operating environment.

AHA will continue advocating for policies that support a sustainable, competitive hospitality industry across Alberta and we thank the Government for listening to industry feedback.