Buzz Kill: The Liberals’ Escalator Tax Provision Will See Beer Prices Go Up 6-9% Next Spring

The cost of beer, wine, and spirits is set to go up enough again that you’ll want to have a drink. Oh, wait…

In 2017, then-finance minister Bill Morneau introduced a 2% hike in the alcohol excise tax and included an automatic escalator provision that would further increase the alcohol excise tax at the rate of inflation every year on April 1 (joke’s on us, fools!).

This means that taxes on beer, wine, and spirits will increase by 6.3% next year. According to John Ivison on the National Post, Beer Canada estimates beer retail prices to go up by 6-9% next year, considering the newest tax hike, other provincial and federal tax increases, and increased operating costs.

“In Ontario, that would take a case of 24 of Coors Original over $50 and a tall can of Coors at a Leafs game to $13.35,” Ivison wrote.

Ivison also points out one concerning detail: since the increase was technically put in place in 2017, the finance minister could stand in the House of Commons and claim that no new taxes have been imposed on alcohol.

Beer Canada estimates that the federal Treasury’s revenues from the excise tax on alcohol have gone up by 17% since 2017. In contrast, people are choosing to buy less beer since the tax hike— sales volumes are down 7.5%

Many have called for ending the escalator provision. In April this year, Conservative MP Pat Kelly called for the Excise Act and the Excise Act, 2001 to be amended to repeal the automatic escalator provision and to reset to pre-2018 levels, or before the escalator was implemented.


Information for this briefing was found via the National Post, CTV News, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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