The federal government's plan to hike alcohol taxes again is facing backlash from Canadians already struggling with rising living costs. Critics argue that the proposed two per cent federal excise increase on beer, wine, and spirits is ill-timed and unnecessary. The Canadian Taxpayers Federation has called for Prime Minister Mark Carney to cancel the tax hike, set to take effect on April 1, citing the burden it will place on taxpayers. Franco Terrazzano, CTF Federal Director, emphasizes the strain on Canadian businesses, particularly brewers, distillers, pubs, and restaurants, suggesting that tax cuts would be more beneficial. The federal government's decision to implement the alcohol escalator tax, which automatically increases excise taxes annually, has already cost taxpayers approximately $1.6 billion since its introduction in the 2017 federal budget. This latest tax hike is projected to add another $41 million to the burden in 2026-27, according to industry estimates. Unionized Canadian brewery workers express concern that the tax increase, coupled with tariffs, rising input costs, and stagnant sales, could force breweries to reduce production and cut jobs at a time when affordability is a pressing issue. The letter from these workers highlights the undemocratic nature of automatic tax hikes and questions the justification of further taxing a Canadian manufacturing industry that is already facing challenges. With taxes from multiple levels of government accounting for half of alcohol prices, the debate over the necessity and timing of this tax hike continues to intensify.
