The Canadian Taxpayers Federation is expecting taxes on alcohol to increase by a whopping 4.7% in 2024 based on new estimates conducted by the firm.
The estimate was revealed in a news release issued by the Federation today, which calls on the federal government to scrap its current plans for an increase on alcohol excise taxes on April 1, 2024.
“Prime Minister Justin Trudeau should be trying to make life more affordable and that means scrapping his alcohol tax hikes,” commented director Franco Terrazzano, “Canadians are struggling with inflation and the last thing we need is the feds making it more expensive to enjoy a cold one at the end of a long work week.”
Estimates by the Canadian Chamber of Commerce released in 2021 suggest that over 47% of the price of beer, 65% of the price of wine, and 80% of the price of spirits is due to taxes within Canada – figures that likely have gone up following subsequent tax hikes since those estimates were made.
Earlier this year, the federal government capped the excise tax increase on beer, wine, and spirits at 2%, after an increase that was slated to be 6.3%. That increase cap however was only instituted for a one year period. Still, the increase was the largest in over four decades.
The federal government expects to make approximately $100 million in 2023-24 from the excise tax.
Information for this briefing was found via the Canadian Taxpayers Federation 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.
