Distillers hope federal budget scraps alcohol escalator tax

Tax hike set for April 1, marking third automatic increase in three years time

Distillers across Canada are calling on Finance Minister Bill Morneau to repeal a tax that has automatically increased the cost of alcohol for three years, with the next hike April 1.

Morneau was set to deliver his government’s final budget ahead of the October election on Tuesday. He has not indicated any plans to do so, but Spirits Canada hopes he will repeal the liquor escalator tax.

The tax, introduced in 2017, is automatically renewed each year without a vote, and sent spirit prices up 17 per cent last year, according to the organization that represents spirit distillers.

Eighty per cent of what people pay for beer, wine and spirits is already taxes, CEO Jan Westcott said in a news release Tuesday.

“Today’s escalator tax is having the same negative effect it had when Canada last experimented with it in the 1980s: sky high prices, a freeze on investment, closed distilleries, lost jobs and Canada losing ground versus our international competitors.”

READ MORE: Premiers join together to oppose federal carbon plan that hampers beer industry

READ MORE: B.C. wine industry disappointed over USMCA-related grocery store sales changes

The increase this April will amount to a few cents per litre, while wine will go up by one to two cents. Beer will climb four to 75 cents per 100 litres. Taxes are based on the percentage of alcohol.

The tax also affects tobacco, which will rise in cost one cent per five cigarettes and 60 cents per 1,000 cigars. Cannabis is also included, but that price will not go up in April.

According to Beer Canada, Canadian beer is taxed $20.31 per case on average, compared to $4.12 in the U.S.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The possibility of the Canadian Premier League expanding to the Fraser Valley has been floated online. (Facebook photo)
Canadian Premier League possibly eyeing Fraser Valley expansion

Soccer league looking to add ninth team to the mix, B.C. markets potentially rumoured

Metro Creative Connection Photo.
Mission council decides to revert back to ‘lifetime’ fire-pit permits

District moving towards restriction, rather than prohibition, of backyard burns

The number of new COVID-19 cases in the Fraser South region has doubled in the last two weeks. The number of cases in the Fraser East region has tripled.
Chart: Tyler Olsen
COVID-19 surge in B.C. fuelled by spikes in new cases in Fraser Valley & Surrey area

Number of newly confirmed cases has tripled in Fraser Valley and doubled in the Surrey/Langley area

John Redekop, with wife Doris, was the 2019 recipient of the Betty Urquhart Community Service Award from UFV. (Photo courtesy of UFV)
Nominations open until Oct. 30 for UFV’s Betty Urquhart Awards

Award recognizes ‘significant impact’ of volunteer work by an individual or group

Maple Ridge-Pitt Meadows’ NDP incumbent Lisa Beare, believes Reese Witherspoon – seen here in the series “The Morning Show,” could best play her on the big screen. (Special to The News Apple TV+/TNS)
Maple Ridge candidates cast themselves in dramatic comedies

ELECTION LEVITY: MLA hopefuls reveal who should play them on the silver screen

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

Chastity Davis-Alphonse took the time to vote on Oct. 21. B.C’s general Election Day is Saturday, Oct. 24. (Chastity Davis-Alphonse Facebook photo)
B.C. reconciliation advocate encourages Indigenous women to vote in provincial election

Through the power of voice and education Chastity Davis-Alphonse is hopeful for change

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

The family of Anika Janz, who died after collapsing at school, has launched a GoFundMe to assist with funeral proceedings. (GoFundMe photo)
Family of student who died launches GoFundMe

Rick Hansen Secondary School student Anika Janz, 14, died after collapsing in PE class

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Most Read