Liquor Stores Income Fund Gains Either Way from Alberta Tax

Liquor Stores Income Fund (LQSIF.PK) was set to gain, at least in the short term, from a change to Alberta’s approach to taxing booze. But now Alberta is repealing the tax, introduced in April, and Liquor Stores stands to gain.

Confused? Stay with us.

The tax increase would have helped comp-store sales and given retailers holding gains on inventory bought before the tax, but sold at a higher retail prices, RBC Capital Markets analyst Tal Woolley said in a research note.

With Alberta changing its plans, this edge is gone.

Ah, but wait. The higher taxes were keeping tipplers away, so let’s just call it even.