Beer Tax Relief: How Brewers Are Working To Reduce Your Tab
The government has capped increases to federal alcohol beer taxes for two years, providing some welcome relief for Canadian brewers and beer drinkers. Here’s how the industry is working to keep more beer tax dollars in your pocket.
Canadian brewers have been advocating for tax reform, arguing the current system is outdated and disproportionately impacts smaller, local breweries. The average federal excise tax increases have exceeded the rate of inflation for many years. This puts Canadian beers at a price disadvantage compared to imports.
How Will This Affect You?
With the two-year beer tax cap now in place, brewers have an opportunity to explore new ways to keep costs low for consumers. Many are focusing on brewing more efficient, increasing production volumes which allows for better tax absorption. Collaborating to secure better bulk ingredient pricing has also helped reduce the tax burden passed on to customers.
Looking ahead, the industry still aims to modernize the long-term beer tax structure. A shift towards a lower, flat rate based on alcohol content rather than arbitrary beer classifications would foster innovation. It could encourage more craft options that drive tourism and local jobs. Most importantly, it means you’ll get to enjoy your favorite brews without as big a tax hit on your wallet. The next steps on beer tax reform will be important to watch.
