Beer-lovers of Canada, some bad news: the federal government is hiking taxes on both Canadian-made and imported beer come this April.
The tax increase, which is set at around 2%, will also increase every year onward to match inflation rates.
Consumers have been relatively quiet on the beer-tax front (maybe because most don’t really know the price of beer is going up) but beer makers are actively trying to get the Trudeau-led government to reverse their taxation-decision.
The tax hike is “going to automatically increase prices for our customers” said Luke Harford, president of Beer Canada, a trade association representing Canadian beer producers, to the Toronto Star.
Beer Canada says that Canadians are already heavily taxed on beer. 47% of the price of beer in Canada is already government tax, one of the highest tax rates in the world, according to the group.
And, again, the new tax measure will escalate, increasing the tax on Canadian beer with each passing year.
To galvanize consumers and get the government to reverse their decision, Beer Canada has launched the “Axe The Beer Tax” petition. Beer Canada is also asking Canadians to tell their local MP, and Finance Minister Bill Morneau, that they’re against the beer tax.
But the federal government, specifically the ministry of finance, is not backing down from their decision.
According to a spokesperson speaking to the Star, the 2% tax hike on beer will really only amount to an extra nickel for every case of beer. The last significant increase on beer taxation was more than 30 years ago, added the spokesperson.
Still, one can’t deny that Canadian are already heavily taxed on beer and alcohol products in general. The federal government already collects over $5 billion in yearly beer taxes.
If you’re against the escalating beer tax, you can sign Beer Canada’s online petition here.