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With sky-high inflation pushing prices higher for food, gas, housing, and other necessities at the fastest pace in decades, the last thing Canadian families need is another federal beer tax increase. Canadians already pay amongst the highest beer taxes in the world. We believe our governments should do their best to keep life affordable, not make it more expensive.
In Canada, taxes represent nearly 50% of the average retail price of beer. Federal taxes on beer have been increased every year since 2017 without a vote or debate in Parliament due to Ottawa’s automatic inflation-indexed alcohol tax hikes. Even at the height of the pandemic, when restaurants and bars were forced to close and many Canadians were out-of-work, these stealth tax hikes went ahead.
88% of the beer consumed here is made here.
Beer is truly a local business with small, medium, and larger brewers making positive contributions to Canada’s reputation, economy, communities, and social well-being. Your favorite pint is made by talented brewers from barley grown locally by dedicated farmers. It’s delivered by rail or truck to your local alcohol retailer or pub and served to you cold by a beer expert. And yet, tax is the single largest component of the price you pay for Canadian beer. Almost half the retail price of beer in Canada — 47 per cent — is government tax, a commodity tax rate five times higher than in the U.S. and significantly higher than in most EU countries.
It’s time for MPs from all parties to stand up and voice their support for hard-working Canadian beer consumers, the 21,000 Canadians directly employed by brewers and the thousands of workers and businesses connected to brewing by voting to defer the annual inflation-indexed beer tax increase before the next one comes into effect on April 1, 2023.
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