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A Calgary beer importer is challenging what it calls a “discriminatory” beer tax intended to promote Alberta’s craft beer industry that was introduced by the provincial government almost two years ago.

Ben Grant, legal counsel for Artisan Ales, told a three-person panel Thursday in Edmonton the changes hurt the bottom line of the Calgary company and argued the markup and creation of a provincial grant contravened the federal Agreement on Internal Trade.

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Grant said since the introduction of the tax, Artisan Ales has seen a 40 per cent decline in sales, which had “caused injury and a denial of benefit” to the company.

In the 12 months following the tax, sales decreased by 33 per cent compared to the previous 12-month period. For the year ending Nov. 30, 2016, it reported net profits fell by 86 per cent.

Changes to the small brewer markup in October 2015 saw brewers in Alberta, British Columbia and Saskatchewan charged a graduated markup starting at 10 cents per litre to a maximum of $1.25 per litre for the largest producers.