B.C. wine producers are welcoming Alberta’s move to scrap a tax on wine in its latest budget, following criticism from industry members.

The Alberta government said last month it was removing the ad valorem tax because it created reduced transparency and business uncertainty.

Christopher Holler, the general manager of Poplar Grove Winery in Penticton, B.C., said under the old system, consumers were charged a flat rate plus a percentage of the wine’s value — which got higher the more expensive the bottle was.

“We’re just really happy that it’s become more simplified,” said Holler.

The new system will reduce costs and confusion for Alberta residents and businesses looking for a B.C. bottle, Holler added.

“Our Alberta customers would ask all the time, ‘Well, can you explain this tax?’ And they didn’t understand it at all. So it is a bit of a win, in terms of how simplified it is,” he said.

Other producers in the Okanagan area agree, but believe there’s more work to do, especially on wines costing between $20 and $30.

“I think the industry groups in general put out quite a lot of information on how much that was affecting the smaller players,” said Rowan Stewart with Quails Gate Winery in West Kelowna.

“The wine industry is already very highly taxed, and an additional tax on that is always going to  be a negative impact,” Rowan added. 

WATCH | B.C. wineries face drop in sales after Alberta increases tax:

B.C. wineries face major sales drop after Alberta hikes wine fee

B.C. wineries say sales to Alberta have dropped by up to 40 per cent after new fees were introduced, despite a trade deal between the provinces that allows Albertans to buy directly from B.C. wine producers. According to the Alberta Hospitality Association, Alberta wine pricing is now the most expensive in North America

After forming a coalition, stakeholders from British Columbia and Alberta advocated for the tax to be repealed, saying local businesses were facing declining wine sales and rising costs.

Wine Growers of British Columbia CEO Jeff Guignard said they met with the Alberta government to discuss these concerns and he’s thankful for the province “making the right decision here.” 

Restaurants Canada is also applauding the move, and said in a statement to CBC News, “We appreciate the government’s willingness to work with Restaurants Canada on a solution that restores a straightforward flat‑tax approach, providing greater transparency and certainty for restaurants and consumers.”

Guignard said this change will create more opportunities for the wine industry as well, especially at a time when there’s more focus on buying Canadian across the country.

“We just go back to the normal flat-tax system that everybody can understand and drive more predictability for businesses too,” he said.