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Canadians will likely be spending a bit more of their hard earned cash on alcoholic beverages beginning next month.
According to the Government of Canada, under the Excise Act, 2001, the rates of excise duty on beer, spirits, and wine are adjusted annually every April 1 based on changes to the Consumer Price Index (CPI).
Unless the annual tax is repealed, taxes on alcohol in Canada will automatically rise on the first of the month without a vote in Parliament, marking the third increase in three years.
#Budget2019 Ottawa continues to squeeze #beer drinkers. Read our response: https://t.co/TTYBtjyciS #cdnbeer #cdnpoli #cdnecon pic.twitter.com/JpcrnwfHLe
— BeerCanada (@BeerCanada) March 19, 2019
Canadian alcohol producers are now calling for an end to this “escalator tax,” saying that it drives consumer prices higher and make domestic producers less competitive.
According to Beer Canada, Canadians already pay five times the beer tax that Americans pay and 47% of the price of beer is government tax.
Online petitions are now being circulated by members of the spirits and beer industry, both aimed at stopping the automatic annual tax increases on alcohol in Canada.
You can check out those petitions by clicking here.
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