Federal government capping excise tax on alcohol after outcry
The 2023 federal budget includes a major win for the beer, wine and spirits industries.
The increase in excise duties on all alcoholic products is being temporarily capped at two per cent starting next month instead of a planned 6.3 per cent increase.
"This proposal temporarily caps the inflation adjustment for excise duties on all alcoholic products at 2 per cent for one year only as of April 1, 2023," reads the budget.
- Watch live coverage of the 2023 federal budget from 4 p.m. ET
- Capital Dispatch: Sign up for in-depth political coverage of Parliament Hill
It's a government concession after microbrewers and distillers said the higher excise tax would affect their bottom lines, already hurt by the higher cost of ingredients, manufacturing and other expenses.
Opposition parties had also been clamouring for the move, and passed a motion earlier this month calling on the government to scrap the increase altogether. The motion called the tax increase the largest on alcohol in the last 40 years.
The president of Beer Canada, which represents Canadian brewers, said in a statement he was "grateful" the government is reducing this year's excise tax increase.
"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," CJ Hélie said in a statement.
"We are appreciative that Minister Freeland’s took action to provide the sector some breathing room to recover."
Alcohol excise duties are automatically indexed to inflation at the start of each fiscal year, hence the planned 6.3 per cent rise this year.
The two per cent cap is just for the 2023-24 fiscal year, the government says. After that, it's possible that inflation will have fallen, meaning the excise tax won't be as punishing.
The government expects to make $100 million in 2023-24 from the excise tax, the documents show.
CTVNews.ca Top Stories
A 'tragedy that can't be measured': North Bay's forever chemical problem is also the rest of Canada's
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
opinion How to use your credit card as a powerful wealth-building tool
Irresponsibly using a credit card can land you in financial trouble, but personal finance columnist Christopher Liew says when used properly, it can be a powerful wealth-building tool that can help grow your credit profile and create new opportunities.
Questlove was not happy with Drake and Kendrick Lamar's beef: 'Nobody won the war'
While some may have been excited and/or amused by the diss-track feud between Drake and Kendrick Lamar, the man many consider to be an elder statesman of hip-hop appears less than enthused about it.
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Bouchard lifts Edmonton Oilers to 4-3 overtime win over Canucks in Game 2
Evan Bouchard scored 5:38 into overtime and the Edmonton Oilers bounced back for a 4-3 win over the Vancouver Canucks in the second round of the Stanley Cup playoffs on Friday.
A renewed Russian offensive on Kharkiv in northeast Ukraine forces some 1,700 civilians to flee
Russian forces began a renewed ground assault in Ukraine's northeast, killing and injuring several people and forcing more than 1,700 civilians to evacuate from the Kharkiv region, officials said Saturday.
For moms-to-be, it's possible to take maternity leave without breaking the bank
Pregnancy is often an exciting and anxious time for parents-to-be. And while painting the nursery and choosing a stroller are typically on the agenda, experts say preparing financially for a maternity leave can help reduce stress later on as well.
Israel orders new evacuations in the southern Gaza city of Rafah as it prepares to expand operations
Israel ordered new evacuations in Gaza's southern city of Rafah on Saturday, forcing tens of thousands more people to move as it prepares to expand its operation and adding that it is also moving into an area in northern Gaza where Hamas has regrouped.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.