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Published on June 1st, 2017 | by OBN Staff

CorkTheTax launched to curb beer tax in Canada

Ottawa – Beer Canada, Restaurants Canada, Spirits Canada and the Canadian Vintners Association have introduced #CorkTheTax – a campaign aimed to raise awareness of the escalator tax mechanism on beer, wine and spirits within Budget 2017.

“Canadians already pay some of the highest taxes on beverage alcohol in the world. For example, the average price of 24 bottles of beer in Canada is 50% tax. That is over and above payroll taxes, income taxes, municipal property taxes, licensing fees and a myriad of other taxes that are built into the price,” says the announcement.

“Two things in Budget 2017 negatively impact domestic brewers: a 2% increase to the excise duty on beer and a mechanism that will automatically hike excise by the rate of inflation every year,” explained Luke Harford, President of Beer Canada. “The 2% is not helpful but this escalator, the automatic annual tax hikes, will do far more damage and we are hopeful the Senate will stop it.”

The proposed legislation to implement the escalator tax is included in Bill C-44 and will make its way through the Parliamentary process by mid-June. The coalition hopes the Senate will take note of the opposition to never ending tax hikes on beverage alcohol.

In May, Beer Canada issued a call to anyone tied to the brewing community to write local MPs to raise awareness.

Visit #CorkTheTax.

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