Friday, December 08, 2017

The Beer Case

The Supreme Court of Canada will soon rule on the beer case. For those not familiar with the background story, it is a case about 15 cases of beer 😊. With beer being less expensive in Quebec, a New Brunswick man hopped over the border to buy a few cases and save a few dollars. Along the way, he was ticketed as the purchase and transportation across boundary lines was contrary to provincial law. The case, no pun intended, went to court with the man’s lawyer filing a constitutional challenge. The court upheld the challenge. While there are those that may argue that the government’s concern about beer purchased in another province is somehow related to their health programs or an issue of smuggling, it is wishful thinking. The so-called ‘sin taxes’ on alcohol, tobacco and the future tax on cannabis are significant sources of revenue for governments and the loss of that income is likely the real concern. There are others that have requested standing at the Supreme Court to relay their concerns about why the lower court decision should not be upheld. They will undoubtedly offer a doom and gloom outcome if protectionist policies, particularly those that effect the government’s source of revenue, are removed. The unspoken concern however will be the political losses and gains resulting from a change to the status quo.

As price comparison is a routine for today’s savvy shoppers, they are likely to continue doing what they are doing regardless of how the Supreme Court may rule on the beer case. With the growing emphasis on eliminating international barriers to free-trade, perhaps it is also time to facilitate the free-flow of goods and services within Canada by starting to address matters related to personal utilization.

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