‘Worst possible time for brewing and hospitality sectors’: CRA releases 4.7% federal beer tax hike

Yesterday, the Canada Revenue Agency (CRA) published the government’s updated excise duty rates on alcohol, and Beer Canada says it could not have come at a worse time.

The rates of excise duty on beer are adjusted annually every April 1 based on changes to the Consumer Price Index.

Beer Canada says the 4.7% increase set to come into effect on April 1, 2024 represents the largest one-time federal alcohol tax hike on Canadians in the last 40 years.

The group adds that it could not have come at a worse time for the brewing and hospitality industries, and an additional tax burden could precipitate job losses, higher consumer prices, and contribute to an overall downturn in domestic economic activity.

“For Canadian businesses and consumers already struggling with severe cost-of-living challenges due to high inflation and interest rates, a nearly 5% federal beer tax increase will make everything more difficult for hard-working Canadians,” said CJ Hélie, President of Beer Canada.

He adds that it’s not too late for the Government to embrace a motion passed unanimously (11-0) by the House of Commons Finance Committee to cap the increase at 2% for at a minimum another year.