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
Serial sexual offender linked to unsolved 1970s homicides of four Calgary girls, women
An investigation into unsolved historical homicides from the 1970s has linked the deaths of two girls and two young women in and around Calgary to a now-deceased serial offender.
Woman with liver failure rejected for a transplant after medical review highlights alcohol use
For nearly three months, Amanda Huska has been in an Ontario hospital, part of it on life support, because of severe liver failure. Her history of alcohol use is getting in the way of her only potential treatment: a liver transplant.
$500K-worth of elvers seized at Toronto airport
Fishery and border service officers seized more than 100 kilograms of unauthorized elvers at the Toronto Pearson International Airport on Wednesday.
Toronto eliminated from PWHL playoffs
Toronto has been eliminated from the PWHL playoffs.
Information commissioner faces $700K funding shortfall, says system is 'overwhelmed'
Canada's information commissioner says her office is facing a $700,000 funding shortfall that could impact its ability to investigate complaints about government transparency and accountability.
B.C. man 'attacked suddenly' by adult grizzly near Alberta boundary: RCMP
A B.C. man is recovering from multiple injuries after he was "attacked suddenly" by an adult grizzly bear near Elkford Thursday afternoon.
Backlash over NFL player Harrison Butker's commencement speech has reached a new level
The NFL is distancing itself from controversial comments by Kansas City Chiefs kicker Harrison Butker during a recent commencement address.
Dabney Coleman, actor who specialized in curmudgeons, dies at 92
Dabney Coleman, the mustachioed character actor who specialized in smarmy villains like the chauvinist boss in '9 to 5' and the nasty TV director in 'Tootsie,' has died. He was 92.
Craig Berube named as next head coach of Toronto Maple Leafs
The Toronto Maple Leafs have named Craig Berube as their new head coach.