Ottawa breweries say alcohol tax hike will hurt them
Local brewers in Ottawa are pushing for the federal government to freeze or lower the federal alcohol tax.
“We cannot afford to absorb a full six-plus percent increase on our taxes,” said Paul Meek the president of Kichesippi Beer Co.
On April 1st the 6.3 per cent federal excise tax is slated to go into effect on beer, wine and spirits.
Taxes already make up 50 per cent of the cost of beer, 65 per cent of the price of wine and 75 per cent of spirits, according to the Canadian Taxpayers Federation,
“We’re not saying don’t increase it. We’re saying let’s keep it in the one to three range,” Meek said. “This is the highest tax increase the industry has seen in over 40 years.”
The tax was introduced in 2017 and climbs every year, tied directly to the rate of inflation.
Like many industries, bars and restaurants have been hit hard by the pandemic and are still recovering while keeping up with inflation and the rising costs of raw materials.
“The price of cans have gone up; yeast, labour... pretty much everything has gone up,” said Kichesippi Beer Co. head brewer Philip Kochanke.
“Before the pandemic we were talking about growth. Now we’re talking about survival,” said Mark Plante the co-owner of Stray Dog Brewery.
Like many businesses during the pandemic, Stray Dog took on $60,000 of government aid intended for small businesses to keep them afloat. But come December, they'll have to pay most of it back.
“If you can’t, they’re going claw that back and you have to pay the entire amount plus interest,” Plante said.
Advocates want an extension to pay back the money until 2024 as the hospitality industry continues to recoup losses and keep up with tax hikes at both the federal and provincial level.
“We’re not asking for favours. Just give us an even playing field,” said Meek. “To hit on an industry that’s struggled the last few years this is not doing anything to help that industry.”
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
'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.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.