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#16 2012-07-31 10:31:28

Blueline
Member
Registered: 2008-06-25
Posts: 191

Re: LCBO, Convenience Stores

rankinfile wrote:

If the LCBO is making a PROFIT over and above the cost of goods, the paying of wages to staff, rent on buildings, as well as collecting tax to be remitted to the province, why on earth could the local corner store also not do the same???

Ummm...you missed the point. 
The corner store could do exactly what you say but they would keep the profit for themselves rather then the current system that has that profit being remitted to the province. Here's some numbers....

Q: What are the LCBOs sales and profit figures?

A: Sales in 2011-12 were $4.7 billion and the LCBO delivered a $1.63 billion dividend to the Ontario government. This did not include $415 million in HST* and $352 million in excise taxes and import duties. (When payments to municipalities were included, the total was $2.4 billion. (As of June 2012, these figures were unaudited.)

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#17 2012-07-31 13:42:05

rankinfile
Moderator
Registered: 2007-12-28
Posts: 843

Re: LCBO, Convenience Stores

ah...I did get the point.  I noted "Does the LCBO remit ALL its profit to the Ontario government?   I suspect not.   The brown bottle stores are I believe privately owned, so their net income (beyond the booze tax remitted to the province), is theirs to keep".

If the $1.63B dividend is indeed all their profit after operating costs, then yes this will be a loss in revenue to the province only partially offset by increase income tax from new employees at the corner store.

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#18 2012-07-31 21:38:11

bulldog
Member
Registered: 2008-03-05
Posts: 665

Re: LCBO, Convenience Stores

in the past, governments discussed selling the kit and kabootle,,,the stores including the real estate and the monopoly of the business for big bucks.  this way the government wins in 2 ways, to merely let corner stores sell booze the province would be left with a pile of obsolete buildings and real estate.......and yes they still keep their sin taxes..........................

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