Advocacy Win! Federal Government Caps Excise Tax Increase at 2% for Two More Years

Advocacy Win!

Federal Government Caps Excise Tax Increase at 2% for Two More Years

Dear ABLE BC members and industry colleagues,

Last week, the federal government announced thousands of dollars in alcohol excise duty relief for craft breweries and other Canadian alcohol manufacturers.

In direct response to advocacy from Beer Canada, the BC Craft Brewers Guild, ABLE BC, and other industry partners, the 2% cap on beer, spirit, and wine excise duties has been extended by two years.

And there's more good news for craft breweries! The excise duty rate on the first 15,000 hectolitres of beer brewed in Canada will by cut in half for two years. This will provide the typical craft brewery with up to $86,952 in additional tax relief in 2024-25.

READ MORE HERE

ABLE BC's Executive Director Jeff Guignard says this is great news for businesses who continue to struggle towards financial recovery from the pandemic. "We have been clear with government that now is not the time for increased costs to businesses in the liquor and hospitality industry. We're delighted to see that the Honourable Chrystia Freeland and Rechie Valdez have listened to the needs of small businesses, and we thank our government partners for their understanding."

Chrystia Freeland, Deputy Minister and Minister of Finance says "Canada’s small craft brewers are among the finest in the world, and are an important contributor to our growing economy by creating jobs in communities across the country." Last week's announcement is "good news for Canadians and for the craft breweries they visit, which will now benefit from thousands of dollars in new tax relief every year.”

Click here to read the excise duty backgrounder. Click here to learn more about the Excise Act.