Chrystia Freeland, the Finance Minister, is set to announce a federal beer tax increase scheduled for April 1.
The alcohol excise tax, also known as the “beer tax,” is expected to rise by 4.7 per cent. Kelowna-Lake Country Conservative MP Tracy Gray stated last month that the increase would cost Canadians approximately $100 million extra in 2024-25.
Since the tax is an “escalator tax,” it is automatically raised without debate or vote in Parliament for scheduled increases. Previously, Parliament had to approve the tax increase each time.
She mentioned on her website that many small local businesses in her district are worried about the tax and its impact on their profits.
“This excise tax increase is happening at a time when our local beverage producers, as well as restaurants and pubs in the hospitality industry, are already struggling with increasing costs of raw materials, packaging, energy, rent, and transportation,” she said.
More information will be provided soon.
