By Lisa Kopochinski
In 2017, the Government of Canada quietly slid an automatic tax escalator mechanism into legislation, which imposes an automatic hike to excise duty rates on all beverage alcohol every April 1.
By Lisa Kopochinski
Canada is known for many wonderful things. Having one of the highest taxation rates on alcohol in the world is probably not one of them. For example, 47 per cent of the price of a bottle of beer is tax, while for a bottle of Canadian whisky or other spirits, 80 percent of what consumers pay is tax.”
Yet, on April 1, 2018 an “escalator tax” was introduced that automatically increases the tax rate annually. Suffice to say, this was no April Fool’s joke. Many in the industry are not pleased and are loudly opposing this recurring annual increase.
“At 47 per cent of the price already, we believe Canadian beer drinkers pay enough tax on their beer,” says Luke Harford, president of Beer Canada, an Ottawa-based association that is the national voice of beer, representing more than 50 Canadian brewing company and 90 per cent of beer made in Canada. The association is a leading proponent in the moderate and responsible consumption of alcohol.
“Canadians pay one of the highest beer taxes in the world. The tax on beer is five times higher here than it is in the U.S. Here, you pay $20 in tax on a case. In the U.S. you pay just $4. Our beer industry is threatened by runaway taxes, yet in the spring of 2017—with no industry consultations or economic assessments—the Government of Canada quietly slid an automatic tax escalator mechanism into legislation which imposes an automatic hike to excise duty rates on all beverage alcohol every April 1 by the rate of inflation.”
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Lisa Kopochinski Writer, Editor and Content Marketer 