Ottawa, March 28, 2023 - Today’s federal Budget 2023 “A Made-In-Canada Plan” responded to the unintended consequences of tying annual federal beer tax hikes to CPI inflation in a peak-inflation period by reducing the April 1, 2023 beverage alcohol duty increase from 6.3% to 2.0%.
“We are grateful that Minister Freeland responded to today’s unique business circumstances, a struggling hospitality sector and a fragile consumer and reduced this year’s increase in federal excise duties from 6.3% to 2%”, said CJ Hélie, President of Beer Canada.
Canada already has the highest beer tax rates in the G7 and 2023’s scheduled increase would have been the largest beer tax hike imposed on Canadians in 40 years.Canadian brewers, hospitality and tourism businesses are still struggling to recover from the pandemic with out-of-home beer sales in taprooms, bars & restaurants, festivals, and sporting venues still 15% to 20% below pre-pandemic levels.
Faced with already very high tax rates, increased operating costs and depressed beer sales volumes, a 6.3% federal beer tax increase this year would have been devastating to brewers, brewery workers, the hospitality and tourism sector and hard-working Canadian consumers and we are appreciative that Minister Freeland’s took action to provide the sector some breathing room to recover”
CJ Hélie, President of Beer Canada
A broad coalition representing the unique grains-to-glass nature of domestic brewing in Canada, including brewers of all sizes and regions, brewery worker unions, farmers, maltsters, restaurateurs, chambers of commerce, tourism and consumer organizations had jointly called for Budget 2023 to include significant beer tax excise duty relief in this year’s Budget.
Beer Canada Logo
ABOUT BEER CANADA
Beer Canada is the sole national inclusive voice advocating on behalf of Canadian brewers of all sizes and regions and Canadian beer consumers. Beer Canada’s member companies brew 90% of all beer consumed by Canadians annually.
The production, distribution and sale of beer supports 149,000 Canadian jobs, generates $14 billion in Gross Domestic Product and $5.7 billion in government tax revenues.
Beer Canada promotes moderate and responsible consumption by those of the legal age and is the authoritative source for data & information on the Canadian beer industry.
SOURCE
