B.C. wineries and breweries face shortfall as liquor branch continues to charge GST [Video]

A tax holiday on the purchase of many alcoholic drinks may feel like a cause for celebration for those who indulge over the Christmas season — but for some B.C. wineries and breweries, it’s a different story.

The alcohol producers say while the two-month federal tax break could cut costs for consumers, those making the beverages are still having to remit the Goods and Services Tax (GST) back to the B.C. Liquor Distribution Branch (LDB).

Their concern comes after the LDB sent manufacturers an email saying that, due to the technical risks of implementing complex system changes during the tax holiday, some manufacturers would have to continue remitting GST to the branch.

“We understand that manufacturers face many of the same systems challenges as the LDB, and may or may not have the ability to relieve GST,” an email to manufacturers reads.

“Thus, there will be no change in the reporting process, and the LDB will be calculating GST on …