TORONTO, ON - February 23, 2024 – Yesterday, the Canada Revenue Agency (CRA) published the government’s updated excise duty rates for beer, wine, and spirits. The 4.7% inflation-indexing represents the largest one-time federal alcohol tax hike on Canadians in the last forty years and comes at the worst possible time for the Canadian brewing and hospitality sectors.
“For Canadian businesses and consumers already struggling with severe cost-of-living challenges due to high inflation and interest rates, a nearly 5% federal beer tax increase will make everything more difficult for hard-working Canadians,” said CJ Hélie, President of Beer Canada. “But, it is not too late for the Government to embrace the motion passed unanimously (11-0) by the House of Commons Finance Committee to cap the increase at 2% for at a minimum another year.”
A vast coalition of consumers and local businesses across beer’s value- chain including brewers, bars and restaurants, organized labour, grain growers, and chambers of commerce continue to voice their support for a stop to tying annual beer tax hikes to inflation at least until inflation returns to the Bank of Canada’s 2% CPI mid-range target.
The brewing and hospitality sectors have struggled with unparalleled challenges in recent years, and an additional tax burden could precipitate job losses, higher consumer prices, and contribute to an overall downturn in domestic economic activity.
To consult the CRA's Excise Duty Notice, visit: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/edbn33/adjusted-rates-of-excise-duty-on-beer-effective-april-1-2024.html
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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 $13.6 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.
