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Brewers in B.C. and Saskatchewan are crying foul over changes announced this week to Alberta’s beer tax system, arguing the new markup structure erects a barrier between producers and consumers and could be a violation of interprovincial trade rules.

“You’re virtually building a wall,” said Ken Beattie, executive director of the B.C. Craft Brewers Guild on Thursday. “Our members cannot absorb the increase and they will pass it along, which means the consumer will pay more for beer produced outside of Alberta.”

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The Alberta government announced Monday that it will be eliminating the lower graduated markup rate applied to beer produced by small craft brewers in the three western provinces (those covered by the New West Partnership trade agreement). The graduated rate will be replaced by an across-the-board markup of $1.25 per litre for all beer, regardless of where it is produced.

However, Alberta brewers — as opposed to those from Saskatchewan and B.C. — will get at least some of the money back, through a new grant program exclusively targeted to brewers with brewing operations and jobs in this province.