Canada Returns to Failed Policies of the Past with Automatic Annual Liquor Excise tax Increases

Canada’s 2017 Budget tabled in the House of Commons on March 22nd, introduced an immediate 2% increase in liquor excise taxes PLUS an automatic increase in each subsequent year.

On April 1st of every year from now on, federal liquor excise duties will automatically increase by inflation as measured by the consumer price index or “CPI”.

Top 10 Reasons to Fight Canada’s New Automatic Annual Liquor Escalator Tax

1. Automatic built-in annual tax increases are hidden from the view of Canadians and are not reviewed or approved by elected Members of Parliament.

2. Liquor taxes are taxes not just on drinks, but also on jobs, on hospitality, on tourism and on middle-class Canadians.

3. Canadians already pay higher taxes on alcohol than just about any one else in the world.

4. The Department of Finance admits to not doing any analysis, or economic modeling, and ignored all other existing federal and provincial liquor taxes.

5. Federal liquor excise taxes are magnified by taxes on top of taxes on top of even more taxes.

6. High Canadian liquor taxes hurt innovation, harm export development and reduce alcohol manufacturers’ purchases of cereal grains (barley, corn, rye and wheat) and fruits from local farmers.

7. Across the board liquor tax hikes unfairly harm moderate and responsible drinkers and do nothing to target higher risk consumption.

8. Excessive liquor taxes lead to greater illegal alcohol production and sales.

9. Canada’s overall punitive liquor taxes make Canadian alcohol manufacturers, small, medium and large, uncompetitive with producers in other countries.

10. Enjoying an occasional drink with family, friends, or neighbours, at home or in local bars or restaurants helps build communities and social bonds through real in-person get-togethers.