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'Breathing room for brewers’: Canadians welcome upcoming beer tax relief

Brewers across the country are breathing a sigh of relief after an announcement by the federal government to cap the upcoming alcohol excise tax increase.

The automatic inflation-based increase to beer, wine and spirits was scheduled to rise 4.7% on April 1, but the government has cut that in half, capping the adjustment to no more than 2% for the next two years.

<who> Photo Credit: NowMedia/Gord Goble

“Today’s federal beer excise announcements provide critical predictability for the Canadian beer sector and fiscal breathing room for brewers,” stated Beer Canada President CJ Hélie in a news release.

“The measures will have a positive impact, not only on brewers but all along beer’s added-value supply chain from the farm to the bar.”

As well as the capped increase, the excise duty rate on the first 1.5 million litres (15,000 hl) of annual beer production will be cut in half, saving a typical craft brewery nearly $90,000 on average, according to the government.

Beer Canada added that there are 1,240 Canadian brewers whose annual production is less than 15,000 hl in a year.

“Canada’s small craft brewers are among the finest in the world and are an important contributor to our growing economy by creating jobs in communities across the country,” said Minister of Finance Chrystia Freeland in a statement.

“Today’s announcement is good news for Canadians and for the craft breweries they visit, which will now benefit from thousands of dollars in new tax relief every year.”

The new rates will come into effect on April 1, 2024, and be in place for two years.



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