SAQ pricing: The cheaper the wine, the more it’s taxed
Montreal, June 19, 2023 – Documents from the Société des alcools du Québec obtained by the Montreal Economic Institute through a request for access to information show that the least expensive private importations sold in stores are also the most heavily taxed.
“If you plan to celebrate Canada Day with an affordable wine, a larger part of the amount you spend will go to the government than if you celebrate with a pricy bottle,” explains Gabriel Giguère, public policy analyst at the MEI. “The SAQ’s markup policy is particularly regressive, gobbling up a larger margin on products that are within everyone’s budget.”
For each bottle of wine, on the first five dollars of a private importer’s price, the SAQ applies a markup of 134.5%. The markup falls to 91% for the next $1.25, then to 50% for the next $8.33. It goes back up to 75% for the rest of the price charged by a private importer.
| Supplier’s price per case of 12 bottles of unfortified wine, privately imported | SAQ markup rate |
| Portion of product between $0 and $60 | 134.5% |
| Portion of product between $60 and $75 | 91.0% |
| Portion of product between $75 and $175 | 50.0% |
| Portion of product above $175 | 75.0% |
The result is that a more expensive wine is subject to a smaller markup by the SAQ than a more affordable wine. To this is added the GST, the PST, and provincial and federal excise taxes on alcohol, such that the SAQ and the different governments are responsible for over three-quarters of the price of an affordable bottle of wine.
“It’s clear that the Quebec government is taking advantage of the SAQ’s legal monopoly to stuff its pockets,” explains Mr. Giguère. “Unfortunately, it’s the general public that pays for this regressive markup policy.”
A few examples:
Price per bottle: $11.85
- GST: $0.52
- PST: $1.03
- SAQ markup: $5.91
- Federal Excise Duty: $0.55
- Specific Tax on Alcoholic Beverages (Quebec) : $1.05
- Total taxes and markup: $9.05
- Portion of the price: 76.4%
Price per bottle: $20.95
- GST: $0.91
- PST: $1.82
- SAQ markup: $9.23
- Federal Excise Duty: $0.55
- Specific Tax on Alcoholic Beverages (Quebec): $1.05
- Total taxes and markup: $13.56
- Portion of the price: 64.7%
Price per bottle: $614.75
- GST: $26.73
- PST: $53.33
- SAQ markup: $229.78
- Federal Excise Duty: $0.55
- Specific Tax on Alcoholic Beverages (Quebec): $1.05
- Total taxes and markup: $311.44
- Portion of the price: 50.7%
You can consult the documents transmitted to the MEI by the SAQ here (in French only).
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