The alcohol is "nature's gift to you" until Governments start taxing it!

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The alcohol is "nature's gift to you" until Governments start taxing it!

When you think about it, making wine is simply fermenting quality grapes.


The grapes transform themselves into a smooth, alcoholic liquid and solid materials (called lees) which eventually sink to the bottom of the wine barrel.


Modern winemaking is not much different, other than the processes that manage separating the liquid from the solids and, usually, filtration to ensure a perfectly clear wine.


Over the last decade, wine has grown steadily as a beverage-alcohol-of-choice, with annual growth rates for commercial wine of between 3% and 4%.


Federal and Provincial governments love wine and they are very creative when it comes to taxing it - see the graphic above.


In Ontario, the LCBO pays a "dividend" to the Provincial Government each year... and for each of the last 10 years, that dividend has been over one billion dollars. ($1.74 billion in the 2013-14 fiscal year.)


We shouldn't complain though. The LCBO's "high tax" strategy paves the way for another approach you can use to get good wine for your personal enjoyment.


At the very least, the simple idea of "low tax" wine is something to think about - over a nice glass of wine.Cheers!