Ontario budget 2025: Alcohol sector reforms continuing as revenues drop again
According to the 2025 budget, the Liquor Control Board of Ontario (LCBO) is set to see a third straight year of lower revenue.
The Ford government is continuing its push to reform the provinceâs alcohol sector, but the 2025 Ontario budget shows money from booze is forecast to drop again due to a variety of reasons including U.S. tariff retaliatory measures.
According to projected revenues in the budget, the Liquor Control Board of Ontario (LCBO) is set to see a third straight year of declining revenue. Officials said they expect to earn $1.85 billion in 2025-2026, which is down from $2.16 billion the fiscal year before and $2.57 billion in 2023-2024.
The tax revenue the Ontario government collects on beer, wine and spirits sold through private-sector channels is set to drop for the fourth straight year, particularly when compared to 2024-2025. The provincial government expects to collect $388 million, down approximately from $562 million from the year before.
Government staff said this yearâs forecast revenue drop is fuelled by a few different factors.
In response to U.S. President Donald Trumpâs tariff regime, Ontario Premier Doug Ford ordered alcohol produced in American states to be pulled from LCBO shelves.
The Ford government also introduced incentives aimed at helping smaller alcohol producers, which in turn means less revenue coming into the Province.
It also comes as officials said they continue to see a continued drop in the demand for alcohol from residents in the province.
Meanwhile, the Province is set to spend $175 million over five years ($35 million a year) on the Ontario grape support program. Officials said itâs meant to increase the number of grapes grown in Ontario in bottles of wine.
âThis program is anticipated to double, on average, the percentage of Ontario grapes in blended wine, leading to the purchase of thousands of additional tonnes of Ontario grapes from grape farmers,â the budget said.
Ontario opposition party leaders slammed the continued focus on alcohol versus focusing on other priorities like health and education.
More to come.
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