Federal government cuts beer tax increase

Beer, drinking beer

The federal government is lowering its national beer tax, which was set to go up on April 1. Finance Minister Freeland announced Saturday that the government will extend its two-year “inflation adjustment cap” for beer, spirits and wine excise duties for an additional two years.

Last month, Freeland said the alcohol excise tax, also known as the “beer tax,” was set to increase by 4.7 percent on April 1. Tory MP Tracy Gray said the 4.7 percent hike would cost Canadians an additional $100 million in the 2024-25 fiscal year.

According to a press release from Freeland, the government will also reduce the excise tax rate by 50 cents per hectolitre brewed in Canada, providing a typical craft brewery with an additional $86,952 of tax relief each year. This comes after craft breweries across the country have been raising concerns about rising production costs.

The new measures are set to take effect for a two-year period beginning on the first day of April, 2024. The tax was originally set to increase by 6.4 percent in 2023, but was limited to a two percent increase after industry lobbying. In December, the union representing brewers, beer retailers and distribution workers issued an open letter calling for an immediate repeal of the federal tax. The letter stated that the 4.7 percent increase in the federal beer tax “poses a serious threat to the economic stability of the brewing industry and threatens the lives of the unionized workers.”


One thought on “Federal government cuts beer tax increase

  1. Isn’t that special when it’s already overpriced by 300%. Booze just contributes to poor health, ruined lives and broken relationships, and empty wallet syndrome.
    No better time than the present to quit this dead end bad habit.

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