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Spirits Canada Disappointed in First Liberal Budget

spiritsCanadian Spirits manufacturers are disappointed the first Liberal Budget provides no relief from the word’s highest beverage alcohol tax burden.

“A new Liberal Government missed an historic opportunity to indicate the Canadian Government supports and appreciates Canadian spirits manufacturers in the way the U.K. Government appreciates Scotch makers, or the Mexican Government supports Tequila makers”, said Spirits Canada, President & CEO Jan Westcott.

The March 22, 2016 Budget did not address the Industry’s request to reduce the rate of excise duty from $11.696/laa* to $6.00 per laa on the first 100,000 laa of production and to $11.00 per laa on the remaining volume

“Our proposal was designed to both act as a catalyst for the growth of new, smaller distillers as well as to serve as a lifeline for larger, export-focused distillers falling further behind more profitable foreign competitors in Ireland, Scotland and the USA”, said Mr. Westcott.

Federal excise duty revenues on Spirits have increases by over 40% since 2006 and last year totaled nearly $700 million dollars.

*Note: laa = litre of absolute alcohol

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