Toronto Mayor David Miller is being told by city staff not to impose a new tax on alcohol in a report that warns the approach would be an administrative nightmare and harm the local economy.
City officials had been studying the idea of an alcohol tax that would be charged on purchases at the LCBO and beer and wine stores. Such a tax, officials believe, would raise $44 million per year for the city.
Just a few days ago the tax was still on the table and Miller expressed annoyance at being asked about it.
"I don't know why you guys are focusing on all that," he told reporters. "That study has been before council for months. It's complicated and it's being looked at."
But city officials are now strongly recommending in a report that Miller and council forget about an alcohol tax.
A major problem with the tax, the report says, is it would only be charged on purchases inside Toronto.
The report notes that many people could easily avoid paying the tax by driving outside Toronto to buy their alcohol.
If that happened, it could lead to the LCBO closing stores in the city.
Another problem, officials say, is that customized systems would have to be developed to collect the tax, which would be both complicated and expensive.
The mayor and his powerful executive committee will consider this report when they meet on Monday.
If they accept the recommendations, the idea of an alcohol tax in Toronto will die.
