11/24/2012 16:09 EST | Updated 01/24/2013 05:12 EST

B.C. brewery still operating despite closure threats

A brewery in Prince George, B.C., is still up and running despite warnings it would be forced to close this weekend because of changes to B.C.’s tax policy.

Pacific Western Brewing said it would be hit with a massive tax bill after increasing capacity launched the business into a higher tax bracket, outgrowing its micro-brewery status.

The company said it was considering layoffs or closure as a result of the increased taxes.

The provincial Liberals say an inadequate version of the tax policy was released earlier this month and a new policy is currently being developed, including changes that would address the problem.

But the announcement left Rich Coleman, the minister responsible for the province's liquor policy, facing allegations of political favouritism after it was revealed Pacific Western Brewing was a major donor to the Liberals and to Coleman's own re-election campaign.

The Liberals are expected to release the details of the new tax policy next week.