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
Poilievre will do 'anything to win,' must condemn Alex Jones endorsement: Trudeau
Prime Minister Justin Trudeau is ramping up his attacks on Conservative Leader Pierre Poilievre as he promotes his government's federal budget.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
New evidence challenges the Pentagon's account of a horrific attack as the U.S. withdrew from Afghanistan: CNN exclusive
New video evidence uncovered by CNN significantly undermines two Pentagon investigations into an ISIS-K suicide attack outside Kabul airport, during the American withdrawal from Afghanistan in 2021.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
All Alberta wildfires to date in 2024 believed to be human-caused: province
There are 63 wildfires burning in Alberta's forest protection area as of Wednesday morning and seven mutual aid fires, including one in the Municipal District of Peace.
Suspects waving weapons, smashing glass in Toronto jewelry store robbery caught on video
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
Pilot proposes to flight attendant girlfriend in front of passengers
A Polish pilot proposed to his flight attendant girlfriend during a flight from Warsaw to Krakow, and she said yes.
Ottawa injects another $36M into fund for those seriously injured or killed by vaccines
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Ex-SNC executive sentenced to prison term in bridge bribery case
The RCMP says a former SNC-Lavalin executive has been sentenced to three and a half years in prison in connection with a bribery scheme for a bridge repair contract in Montreal.