HST is Just Another TTT: Tax on Tax on Tax

From a government perspective, this year's wine show should prove interesting as the monopoly tries to explain to the nearly 200 visiting suppliers how they could possibly justify raising an already grotesque liquor tax yet again after the impending HST boondoggle. The effect of the 12 per cent HST versus the 10+5 PST+GST will be to lower the amount of the tax on tax at the cash register, but the savings are a shell game. The basic price of wine, beer and spirits will be increased by a government adjustment to its markup levy (they do not see it as a tax) to make sure the provincial coffers are not out a dime. Of course, if you have that wine with dinner in a restaurant you can add 12 more per cent onto the cost of your food, thanks to the HST.

Speaking of taxes. I find it even more than interesting that the Liquor Control Board of Ontario tells its suppliers that "it is a term of the LCBO purchase order that each supplier not sell any product to the LCBO at a price (exclusive of taxes, duties, and freight) which is higher than the price at which the product is being sold by the supplier to any other government liquor board or government liquor purchasing body or like entity in Canada." As a result a wine selling for $10 wholesale to the LCBO before markup gets to the store shelf for roughly $16. The result of the price edict means any supplier working with the LCBO must use the same price in B.C. or risk being terminated as a supplier in the Ontario market. But after our tax is applied, roughly double the Ontario levy, the same wine ends up in B.C. stores for $20 to $22.

Call me crazy, but isn't that some sort of reverse price fixing?

How is it that the Ontario government can hold sway over the price of wine sold in British Columbia? In the real world, a winery is allowed to set its wholesale price free from interference by government so that its ultimate shelf price makes sense in all markets. If we are going to have one price for Canada, why not get rid of the provincial monopolies and allow Canadians to buy and sell what they want, coast to coast, free from any petty, local protectionism.

The good news is I'm excited to share today's picks. All are excellent wines for the tax, and you can meet all but one supplier next month at the Playhouse bash. For tickets to the tastings, log on to www.playhousewinefest.com.

We begin with Castaño La Casona Monastrell 2007 from Yecla, Spain. This is the red wine everyone asks me to recommend. Soft, easy sipping, reasonably dry. A wine for wine drinkers who can buy by the case and pull out when the crowds swell. Believe it or not, the wine is dry-farmed, (no irrigation, and that keeps yields naturally low) and the vines are 40 to 60 years old. All for $9.50. Back up the truck and load up.

The (Don Miguel Gascon) 1884 Reservado Malbec 2008 has been showing up on city restaurant lists of late. The wine is an attractive proposition on the nose. The palate is soft and smoky with poultry spice, tobacco, olive, green herbs, orange, cherry jam and mocha flavours. The name is changing from the Don Miguel Gascon to Reservado to comply with a cranky European Community that wants to prevent you from mistaking this Argentine malbec with a wine from Gascony. Can you say "grasping for straws"?

The Réserve Perrin Côtes du Rhône Rouge 2007 continues its ascent in quality. Add to that the highly rated 2007 vintage, and you have a stylish red wine. Look for an elegant, forward style with fine texture and structure mixed with black cherry, licorice, dark plums and savoury mineral, exotic orange flavour. Good value in its category.

Collectors should look to the Clos de L'Oratoire des Papes Châteauneuf-du-Pape 2007, from the Rhone. You don't often get top-flight Châteauneuf de Pape for $50, and this will keep for a decade or more, improving most of the time in bottle. Look for ripe, round, light grainy tannins and plenty of orange, raspberry, black cherry, licorice, white pepper, mineral, vanilla flavours. Delicious.

The best yet from the Doña Paula is the Doña Paula Malbec Estate 2008 that will be poured at the 2010 Playhouse festival. Love the spicy, savoury, vanilla, sage, coffee aromas and the chocolate, vanilla, sage, tobacco, dried herbs, black cherry, plum, orange flavours. There is fine intensity and balance here, and an underlying complexity that sets it apart from the ordinary. This will age gracefully. Well done.

The Ata Rangi Crimson Pinot Noir 2008 may be the archetypal New World Pinot Noir: half Burgundy, the good half, and half New World, again the best half. The nose and palate are in sync, sharing a spicy, black fruit character and a long silky smooth texture from front to back with moderate tannins and a dry, earthy, savoury note throughout. Easy to drink now. More than an introductory wine, it represents good value. It should be on every restaurant list in the city.

CASTAÑO LA CASONA MONASTRELL 2007, YECLA, VALENCIA AND MURCIA, SPAIN

Price: $9.50

UPC: 008422443002519

Score: 86/100

Remarks: Back up the truck and load up.

(GASCON) 1884 RESERVADO MALBEC 2008, MENDOZA, ARGENTINA

Price: $17

UPC: 00722358070008

Score: 88/100

Remarks: Fresh, round finish for current consumption. Excellent restaurant wine.

RÉSERVE PERRIN CÔTES DU RHÔNE ROUGE 2007, RHONE VALLEY, FRANCE

Price: $18

UPC: 631470000131

Score: 88/100

Remarks: Good value in the category.

CLOS DE L'ORATOIRE DES PAPES CHÂTEAUNEUF-DU-PAPE 2007, RHONE VALLEY, FRANCE

Price: $50

UPC: 00714320142509

Score: 91/100

Remarks: Delicious warm, fruity and fresh with good extract. Enjoyable now but will age.

DOÑA PAULA MALBEC ESTATE 2008, LUJÁN DE CUYO, MENDOZA, ARGENTINA

Price: $22

UPC: 00836950000056

Score: 90/100

Remarks: The 2009 just struck gold at the 2010 Argentine Wine Awards.

ATA RANGI CRIMSON PINOT NOIR 2008, MARTINBOROUGH, WAIRARAPA, NEW ZEALAND

Price: $28

UPC: 9421013421650

Score: 89/100

Remarks: Should be on every restaurant list in the city.