Alcohol is about to get more expensive in Canada. Can the price hike be stopped?
Canadian residents might notice that their next trip to the liquor store sets them back further than usual.
On April 1, the federal government's annual escalator excise tax will go into effect, raising the price of beer, wine, and spirits by just over six per cent.
While buying a few beers at The Beer Store in Markham, Ont., customer Scott Maple told CTV News Toronto he didn't support the price hike.
“I really hope they don't implement that,” Maple told CTV News Toronto. “It just seems so unnecessary at this time.”
Some brewers and consumers are hoping the tax can be stopped before it goes into effect.
According to the Canadian Taxpayers Federation (CTF), taxes already make up 50 per cent of the cost of beer, 65 per cent of the cost of wine, and 75 per cent of the cost of spirits.
"Canadians are already paying enough tax, more than enough tax every time you buy a pint of beer," Franco Terrazzano, federal director of CTF, told CTV News Toronto.
The CTF is calling on the federal government to scrap the alcohol tax increase.
Terrazzano noted that the price hike would go into effect the same day that Members of Parliament and Prime Minister Justin Trudeau would get a raise.
“On the very day the carbon and alcohol tax are to go through, Members of Parliament are taking their fourth pay raise since the start of the pandemic," he said.
Beer Canada, a lobby group for brewing companies, believes there is still time to stop the alcohol tax increase when the federal budget is tabled on March 28.
“There is an opportunity for the Minister of Finance Chrystia Freeland to do the right thing and recognize that the automatic increase that is in law today, was not meant to be applied in circumstances like these2," CJ Helie, president of Beer Canada, said.
The Federal Conservative leader and leader of the official opposition, Pierre Poilievre, has said that “Conservatives believe this is the worst possible time to raise taxes,” stating that “planned tax increases on alcohol should be cancelled.”
Even some liberal MPs said they're hearing from their constituents that the tax hike should be stopped, or at least reduced.
Peter Fragiskatos, the Liberal MP for London North Centre, agrees with reducing the alcohol tax.
“I don't believe the tax increase should go ahead and I don't think it should be tied to the rate of inflation," Fragiskatos said.
If the tax does go through some pubs and restaurants say it will impact their bottom line as they continue to try and financially recover from the pandemic.
Even if the tax doesn't go through, beer, wine, and liquor prices are still likely to increase due to transportation, energy, and packaging costs. Beer Canada says beer prices could rise another 10 per cent in 2023.
CTVNews.ca Top Stories
Canada, G7 urge 'all parties' to de-escalate in growing Mideast conflict
Canada called for "all parties" to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
'It was all my savings': Ontario woman loses $15K to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Families to receive Canada Child Benefit payment on Friday
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
Taylor Swift drops 15 new songs on double album, 'The Tortured Poets Department: The Anthology'
On Friday, the pop star released her 11th album and at 2 a.m. Eastern, she released "The Tortured Poets Department: The Anthology," featuring 15 additional songs.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.