Beer Canada: Excise Tax Cap Just Enough for Brewers to Catch Their Breath - VOCM

Beer Canada says Ottawa’s two year pause on upping the federal excise tax will only be enough for brewers to catch their breath.

The tax on beer, wine and spirits was scheduled to increase to 4.7 per cent on April 1, but Finance Minister Chrystia Freeland revealed on Saturday that the rate would be capped at 2 per cent for the next two years.

There will also be a tax cut on the first 15,000 hectolitres of beer produced at craft breweries.

CJ Hélie, President of Beer Canada, says it’s great news as many local breweries are operating at a loss due to increased costs on packaging and a 60 per cent jump in the price of barley.

“I think what we’re trying to do is stem the bleeding at this point,” he says. “We’re seeing closures, and we’re seeing a whole bunch of disruptive measures in the marketplace. If we could just hold steady for the next couple of years while the Canadian economy rebounds and consumers regain confidence, I think that would be a huge win.

Hélie says prices for the customer may still increase, despite the cap on the tax hike.

He says breweries will still feel the pressures from increased operating costs, which could mean prices go up in some cases. That said, Hélie says the consumer benefits from not seeing their local breweries having to shut down.

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2024-03-11 10:03:00Z
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