A federal tax increase on beer

By Staff

March 9th, 2024


The Canadian Revenue Agency published notice of an excise tax increase of 4.7% effective April 1, 2024. Today, the Beer Store launched a consumer awareness campaign in all its stores province-wide regarding this beer tax increase.

 “TBS believes it is important to tell our customers of the Government of Canada’s decision to increase beer taxes by 4.7% on April 1,” said Roy Benin, President, and CEO of The Beer Store.

 With consumers seeing higher prices on daily purchases, The Beer Store wants consumers to be aware of the increase in beer taxes and its potential effect on retail prices.

We applaud The Beer Store initiative. Can you think of a worse time to impose this tax.

 Under Canada’s Excise Act, excise tax increases every year based on inflation. Given persistently high inflation levels, this year’s increase will be the biggest in 40 years. Last year, the Government of Canada capped the excise tax increase at 2%, in line with the Bank of Canada’s CPI target. 

We applaud the Ontario government’s announcement of a two-year freeze on provincial beer taxes,” said Benin. “We urge the Government of Canada to implement a similar freeze, beginning with not increasing the excise tax planned for April 1 or, at a minimum, impose a 2% cap.”

 In Ontario, typically, 43% of the retail price of beer is provincial and federal taxes.

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3 comments to A federal tax increase on beer

  • Ted Gamble

    Worth noting now this is an automatic annual increase tied to inflation which has been fueled by out of control government spending. The cancerous, malignant federal government keeps growing. Canada is experiencing a manufactured “population trap” in which the economy cannot handle the increase in population. This is a term commonly used to describe a “developing country”. Canadians are becoming poorer as the per capita GDP continues to slide quarter after quarter.

  • Joe Gaetan

    Carbon Tax, Beer tax, what’s next Justin? Earth to the the B.O.C, is “Beerflation” helping or hurting Canadians? Look no further than, “Under Canada’s Excise Act, excise tax increases every year based on inflation.” Or the inflation dog is chasing it’s own tail.

  • Michael Hrinljan

    When it’s good news it’s Trudeau, when it’s bad news it’s the federal government or Ottawa. So let’s just say it correctly, “Trudeau is raising the tax on beer by 4.7”. It will also cost you more since Trudeau is raising the carbon tax on April 1st.