This is how Canada's alcohol tax hike will impact Ontario
The price of alcohol is set to rise in just over a month with a tax increase on tap for Ontario, along with the rest of the country.
A 6.3 per cent federal tax increase on beer, wine and spirits will go into effect on April 1.
This excise tax automatically climbs every year in accordance with the rate of inflation. When it was introduced in 2017, the federal tax on alcohol rose by two per cent.
The Liquor Control Board of Ontario (LCBO) told CTV News Toronto that their prices are based on a variety of factors: the supplier’s price plus federal import and export duties, freight, levies, a standard mark-up, HST and container deposit.
“Our suppliers set their own pricing (subject to minimum retail prices) and have the option to adjust their pricing up or down throughout the year in response to currency fluctuations, federal taxes or freight rate changes, or price changes by their competitors,” an LCBO spokesperson said.
Retail price increases are determined by alcohol producers, the provincial liquor board explained. Meaning, price hikes that come into effect on April 1 at Ontario liquor stores will vary product-by-product.
“What we are forecasting is if this goes ahead, the price of a 12 pack in Ontario, given everything going on, would go up about 10 per cent,” CJ Hélie, President of Beer Canada, told CTV News Toronto. That increase would be due to a compilation of cost increases across the board for the beer sector, including the price of barley, corn and transportation, alongside the tax.
“It would be more of a gradual thing,” Hélie said about the potential price hike. “That sticker shock is too much. Breweries would look to do it in increments throughout the year.”
In an effort to avoid that scenario, he is pushing for a freeze on the tax until inflation returns to Canada’s two per cent target. “It’s just the worst time to pile on and make things worse,” Hélie said, pointing to the rough patch of pandemic years when the hospitality sector shutdown, dragging sales down by about 3.5 per cent last year.
Advocacy for the tax freeze comes as a new report, funded by Health Canada, found consuming more than two drinks per week constituted a moderate health risk due to evidence linking alcohol to cancer. These guidelines marked a significant change from the previous understanding that men could have up to 15 drinks per week with low risk, and women up to 10.
Restaurants Canada, a national not-for-profit association representing the industry, is also calling for a deferral of the upcoming federal tax increase in order to grant food and beverage businesses more room to “absorb another tax increase at this vulnerable time,” the organization said earlier this week.
Canada’s Chamber of Commerce has called on the federal government to repeal the automatic tax increase or at minimum, freeze it.
CTVNews.ca Top Stories
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
BREAKING 15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.
Amid climate change warnings, Canadians lukewarm on electric vehicles
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.
Three dead, two hospitalized, following collision in Fredericton: police
Three people have died and two have been hospitalized after a speeding car struck a tree and landed on another vehicle in Fredericton Sunday morning.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Madonna's biggest-ever concert transforms Rio's Copacabana beach into a massive dance floor
Madonna put on a free concert on Copacabana beach Saturday night, turning Rio de Janeiro's vast stretch of sand into an enormous dance floor teeming with a multitude of her fans.
Mexican authorities say thieves killed 2 Australians and an American to steal their truck
Thieves killed two Australians and an American on a surfing trip to Mexico in order to steal their truck, particularly because they wanted the tires, authorities said Sunday.