People involved in the local wine scene are reacting positively to one specific aspect of the 2024 provincial budget.
The government is proposing to eliminate the 6.1 per cent basic tax at on-site winery retail stores.
Wineries from across the province have worked long and hard with others in the industry to lobby for the elimination of the tax on wine sold at Ontario wineries.
For some smaller wineries getting rid of the tax will mean the difference between staying above water or sinking, especially at a time with other challenges like inflation and high interest rates.
Speaking on AM800's The Shift with Patty Handysides, Sprucewood Winery president Steve Mitchell says happy doesn't even describe how he's feeling right now.
"You look at most wineries in Ontario by volume, most of the wineries are small wineries. These small wineries have been living with a 6.1 per cent surtax. That comes right off the top, this isn't on profits, so if you see a $10 bottle of wine six per cent of that right off the bat was tax," he said.
He says this change benefits the wineries at the smaller end of the scale greatly.
The 6.1 per cent tax was at the provincial level on Ontario based producers, and not going after wines that are being imported from other countries.
Mitchell says it was exclusive to winery retail store operators, so it's a big relief and they'll be able to do some different things as a result.
"I think it means different things for each winery, but I can say for us here at Sprucewood Winery that's freed up capital to do different things with. Before it was just money that went out the door and no other business pays that tax other than small Ontario wineries."
He says it's money freed up to spend on marketing to get more people through the doors, and they can spend it on salaries to hire more staff.
Mitchell says this is about fairness, and it's something that really has been a long time coming.
"There's been a lot of private members bills over the years from various parties. We've had in each of the different wine regions different members that are representing our region, and they'd go to bat to try to make something happen, but I can say right now something has happened," he said.
The province is also preparing Ontario based producers to help with the transition to a more open alcohol marketplace in the years ahead.
- with files from AM800's The Shift