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.
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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