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
B.C. woman facing steep medical bills, uncertain future after Thailand crash
The family of a Victoria, B.C., woman who was seriously injured in an accident in Thailand is pleading for help as medical bills pile up.
LIVE @ 4 EDT Freeland to present 2024 federal budget, promising billions in new spending
Canadians will learn Tuesday the entirety of the federal Liberal government's new spending plans, and how they intend to pay for them, when Deputy Prime Minister and Finance Minister Chrystia Freeland tables the 2024 federal budget.
Ontario woman charged almost $7,000 for 20-minute taxi ride abroad
An Ontario woman was shocked to find she’d been charged nearly $7,000 after unknowingly using an unauthorized taxi company while on vacation in January.
WATCH Half of Canadians living paycheque-to-paycheque: Equifax
As Canadians deal with a crushing housing shortage, high rental prices and inflationary price pressures, now Equifax Canada is warning that Canadian consumers are increasingly under stress"from the surging cost of living.
Inmate who escaped from N.B. prison has long history of violent crimes
An inmate who escaped from Dorchester Penitentiary in Dorchester, N.B., on Saturday evening has a long history of violent crimes and a history of escaping custody.
Annual inflation rate increased to 2.9% in March
The annual inflation rate ticked higher in March compared with February, boosted by higher prices for gasoline, Statistics Canada said Tuesday.
Tim Hortons launches pizza nationally to 'stretch the brand' to afternoon, night
Tim Hortons is launching flatbread pizzas nationally in a bid to pick up more afternoon and evening customers.
Thousands of dollars worth of tropical fish stolen from Ottawa Valley restaurant
Ontario Provincial Police are investigating the theft of "several thousand" dollars worth of tropical fish stolen from an Upper Ottawa Valley restaurant last week.
NASA confirms mystery object that crashed through roof of Florida home came from space station
NASA confirmed Monday that a mystery object that crashed through the roof of a Florida home last month was a chunk of space junk from equipment discarded at the International Space Station.