Toronto, March 5, 2024 - Beer Canada is calling on the Government of Canada to take all appropriate steps to avoid the unintended consequences of the imposition of a nearly 5% federal beer tax hike effective April 1, 2024.
“The delayed tabling of Budget 2024 until April means the inflexible automatic increase on beer taxes is scheduled to proceed without providing the chance of Parliament to have their say”, said CJ Hélie, President of Beer Canada. “We believe the majority of Members of Parliament of all parties support either a freeze or a cap on beer taxes and their will should be taken into consideration even if the Budget is not ready until after April 1st”, he added.
Deputy Prime Minister and Minister of Finance announced the tabling of this year’s Budget would be on April 16th instead of its more normal March date.
Last year’s Budget tabled on March 28, 2023, capped the increase at 2% for a single year and we believe a similar 2% cap moving forward should be announced prior to these new rates become effective on April 1, 2024, consistent with the recommendation of the Finance Committee.
A Motion was passed unanimously (11-0) by the House of Commons Standing Committee on Finance (FINA) on February 15th as part of the Committee’s Pre-Budget deliberations to limit the April 1, 2024, increase of the excise tax on beer, wine, and liquor to the Bank of Canada’s target inflation rate of 2%.
“The Deputy Prime Minister and Minister of Finance should provide direction to the Canada Revenue Agency of the Government’s intention to implement FINA’s recommendation at the earlier opportunity in order to avoid inflicting unintended harm on Canadian consumers and businesses from the farm to the brewery to hospitality”, Hélie added.
A vast coalition of consumers and local businesses across beer’s value-chain including brewers, bars & restaurants, organized labour, grain growers and chambers of commerce continue to demand Parliament have a vote on any beer tax hikes and end tying beer tax hikes to peak-inflation rates.
At nearly 50% of the typical retail price, Canada already has the highest beer taxes in the G7.
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 $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 legal drinking age and is the authoritative source for data & information on the Canadian beer industry.
