Ontario’s decision to accelerate the expansion of alcohol sales to convenience stores will cost taxpayers $612 million, according to a new report from the province’s Financial Accountability Office.
The fiscal watchdog revealed that Premier Doug Ford’s move to speed up the implementation from 2026 to 2024 represents a significant portion of the projected $1.4 billion in total costs associated with the expansion through 2030.
A huge chunk of these acceleration costs — $225 million — will go directly to The Beer Store to maintain its retail footprint until the end of 2025. The remainder stems from lost tax revenue and decreased LCBO retail sales.
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The FAO warns the total cost of expanding alcohol sales could reach $1.9 billion by 2030 under a worst-case scenario. They project $1.28 billion in lower tax revenues as sales shift from traditional retailers to grocery, big-box, and convenience stores that are not subject to the same taxes.
The expansion plan will allow the sale of beer, wine, cider, and ready-to-drink beverages in participating convenience, grocery, and big-box stores across Ontario, with the LCBO serving as the exclusive wholesaler to these new retailers.
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