(Toronto) Finance Minister Chrystia Freeland said the federal government will cap the annual increase in the excise tax on spirits and wine at 2 per cent for two more years.
The excise tax on alcohol was to increase on 1er April by 4.7%, depending on inflation, but Mme Freeland announced Saturday that the increase was capped at the lower rate.
She also announced tax relief for local craft breweries by halving the excise duty rate on the first 15,000 hectoliters of beer for two years.
She says Canada’s small craft breweries are among the best in the world and contribute greatly to the economy.
Restaurants Canada applauds the move, saying the financial assistance will give operators a chance to catch their breath as they try to cope with inflation and bounce back from the COVID-19 pandemic.
The Canadian Taxpayers Federation says it’s good to see some relief, but that the government should not increase alcohol taxes at all.