Canada’s Liberal government has declared that it is now going to support Canadian small businesses by providing alcohol excise duty relief. The relief is primarily aimed at local craft breweries, with revenues below $10 million.
The relief is to come in the form of capping the inflation adjustment at two percent for beer, spirits, and wine excise duties, as well as by cutting the excise duty rate by half for the first 15,000 hectolitres (roughly 396,258 gallons) of beer brewed. The typical craft brewery is expected to see up to $86,952 in tax relief by the measures.
The relief is to be in place for a period of two years beginning April 1, 2024.
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Commenting on the relief, the Rechie Valdez, Minister of Small Business, said that the relief will “allow craft breweries to spend less on duties, and more on what matters most: growing and innovating their small businesses.” Chrystia Freeland, Minister of Finance, meanwhile said that, “today’s announcement is good news for Canadians and for the craft breweries they visit, which will now benefit from thousands of dollars in new tax relief every year.”
READ: CTF Anticipates Canada’s Alcohol Excise Tax To Climb 4.7% In 2024
Of course, if they truly cared about small business, they would change the tax permanently rather than for a two year term – or not implement it in the first place.
Government stats provided suggest that there are more than 1,100 small and independent breweries in Canada, which employ close to 23,000 people.
The relief follows temporary relief instituted in 2023 for a one year term that capped excise duty to the same two percent inflation figure.
Information for this briefing was found via the Government of Canada and the sources 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.
