Federal government’s beer tax has increased again
Posted Apr 2, 2021 02:00:00 PM.
On April 1, the federal government's excise beer tax increased again for the fifth time in four years, and the second time during the pandemic.
The tax was introduced in 2017 and automatically increases annually without a vote by parliamentarians.
Interim President of Beer Canada, Luke Chapman said in an interview with 570 NEWS this has a significant impact not only for the beer industry, but agriculture, tourism, and hospitality.
“It is a hindrance for brewers, but also for businesses that depend on beer sales, especially considering how challenging it has been for a lot of these businesses, particularly restaurants and bars during COVID-19.”
Chapman also provided a local example of how this tax massively impacts breweries in the region. “I'll use Waterloo Brewery as an example, they are a mid-sized Ontario-based brewery, and with this increase alone is (roughly) an additional $130,000 that they are now remitting to the government instead of investing in their business.”
On top of the tax, Ontario will go into another province-wide shutdown on Saturday, and Chapman said with both of these in play, the tax is even more devastating for the hospitality sector.
“That's why I think this federal government decision to raise the tax this year is a bit of a head-scratcher – these businesses are going to emerge out of this shutdown in a very challenging situation, and they are going to be met with tax decisions that are ultimately going to result in (greater) costs.”
Chapman added that Beer Canada and their partners from the agricultural, hospitality, and tourism sectors have been calling on the federal government to freeze the tax through the 'Freeze It For Them' campaign, which already has received over 10,000 signatures from across the country.
Our statement on today's federal beer tax increase.
Notre déclaration sur l'augmentation de la taxe fédérale sur la bière d'aujourd'hui.https://t.co/COnQuBODyC pic.twitter.com/exemSQEyay
— Beer Canada (@BeerCanada) April 1, 2021
