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
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Prince William and wife Kate thank public for birthday messages for son Louis
Prince William and his wife Kate thanked the public for their messages which had been sent to mark the sixth birthday of their youngest son Louis on Tuesday.
She was the closest she'd ever been to meeting her biological father. Then life dealt her a blow
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.
Quebec farmers have been protesting since December. Is anyone listening?
Upset about high interest rates, growing paperwork and heavy regulatory burdens, protesting farmers have become a familiar sight across Quebec since December.
South Korean sentenced to 14 months in jail for killing 76 cats
South Korean man has been sentenced to 14 months in prison for killing 76 cats in one of the country's most gruesome cases of animal cruelty in recent years.