Canada Caps Alcohol Excise Tax Increase at 2% Until 2026

The federal government's decision aims to support small breweries and the hospitality sector amidst inflation challenges.

Finance Minister Chrystia Freeland announced the cap on alcohol excise tax increases, originally set to rise by 4.7% tied to inflation, at 2% for the next two years.
The move is intended to alleviate the financial burden on small breweries and the wider hospitality industry, which have been hit hard by rising costs and the aftermath of the COVID-19 pandemic.
Conservative Leader Pierre Poilievre criticized the government's tax policies, suggesting they add to the financial pressures on Canadians.
Restaurants Canada and the Canadian Chamber of Commerce welcomed the tax relief, highlighting its potential to aid recovery in the hospitality sector.
The tax cap is expected to cost the government C$153 million over two years, with legislative action pending to formalize the change.