HST Plus New Markup = Zero Savings

It is basic math, really. The current taxes -- 10 per cent PST and five per cent GST -- yield three per cent more in revenue than the new 12 per cent HST will raise.

Fear not, however -- provincial finance officials have moved to prevent any wine prices from falling due to its HST being three-per-cent less. The B.C. Liquor Distribution Branch recently announced it will simply raise its wine markup levy, to an astounding 123 per cent from 117 per cent. In the case of hard liquor, the tax rises to 170 per cent from 163 per cent.

The government has been quick to tout the price-falling properties of the HST, stating: "International studies show countries with value-added taxes, like the HST, have lower prices." Yet somehow, it has decided that wine buyers should not benefit from any savings brought about by the HST. In fact, with new increases to its markup levy on wine (the 123-per-cent levy on wine is not considered a tax in Victoria) B.C. upholds its mantle as one of the most overtaxed liquor jurisdictions in the world.

I will not bore you with math but under the new taxes, a wine that costs $12 will sell for approximately $30. That is, $18 of that will be tax. Even though restaurants get an HST-adjusted price, they tend to double the shelf price of the wines they sell. So, $30 means $60 on the wine list before applying the 12-per-cent HST at the restaurant till. That doubles the government's GST take to a nifty $7.20 and puts the final price of that $12 wine at approximately $67.

It does not end there.

Your food bill, likely around $60, will now be subjected to the 12 per cent HST for the first time, adding an extra $7.20 to the bill. Let's round the total to $135, add a 20-per-cent tip, and your dinner for two is at $162. All for an ordinary meal and a single bottle of wine that arrives in British Columbia at $12.

Here's what really scares me. As the HST model kicks in and businesses start passing along all the savings claimed by government and the price of wine starts falling, the liquor tax in B.C. is going to go berserk as government continually tries to make up the difference.

Okay, we've made our point. The HST is bad for wine and restaurants, which means it is going to be really bad for tourism. Unless, of course, government decides to get out of the liquor business and let the free market determine the price of wine. Who knows, it may well encourage new investment, spur growth, create jobs in local communities, and make B.C. more productive and competitive. Think of the taxes.

Drinking at home may be the only solution, so let's get started.

The Trivento Tribu Viognier 2009 opens with attractive orange, ginger, floral aromas. The palate is juicy and fresh with orange Creamsicle, ginger, melon rind, lees and nectarine flavours. Crisp without being heavy, this offers great value for summer and perhaps a little competition for Cono Sur.

The Melini Chianti Pian del Masso 2008 is a pleasant surprise. Melini has been making mediocre sangiovese for years but this '08 is a big improvement. The entry is round, the fruit is sweet and ripe with bits of vanilla and milk chocolate, all mixed into its clean black cherry, floral fruit. This is a much-needed addition for most neighbourhood restaurant lists where Italian wines are served.

A blend of carignan, grenache and syrah is the behind the Mont Tauch Fitou Growers Reserve 2008 from Fitou in the south of France. Look for a warm, meaty, prune/plum red with savoury, spicy, leather notes and cherry flavours. The palate is dry and warm; the finish is a mix of cherry, licorice, orange and five spice flavours. Try this with most barbecued red meats.

A delicious $16 Spanish wine that is already five years old should be an easy sell but clearly, Castaño Hécula 2005 Monastrell is not top of mind with most consumers. Spain is the theme of next year's Vancouver wine festival so maybe you should spend the summer getting to know this rich, supple, smoky black cherry jam red with just a dusting of tannin. It offers fine value for the money. Try it with lamb chops; it is worth the effort.

Mud House Pinot Noir 2008 is another delicious aromatic pinot from Central Otago. The fruit grown at Bendigo is bright and soft, mixing sweet Bing cherries and plums with a subtle dusting of spicy, savoury dried herbs. The finish is silky smooth but not overly warm. Sensibly, parts of the wine were aged in new and used French oak while other bits remain in stainless steel tanks prior to blending. Love the value here.

If you are really into wine, don't miss the De Angeles (Vina 1924) Malbec 2007 from the Vistalba District of Luján de Cuyo in Mendoza, Argentina. While others are ordering 2009 Bordeaux stars for 20 times the price, you can cellar this impressive savoury, floral, chocolate and black cherry scented red that is a steal. Full and supple with exquisite balance, this smoky red with big savoury, plum jam licorice flavours will age for a decade or tame a steak now. Buy this one by the six-pack before it disappears.