Canada Increases Excise Tax on Beer and Wine

Canadians who enjoy the occasional adult beverage will have to pay a little bit more for their favorite libation.

Beginning April 1, 2018, the excise tax on beer and wine increases by 1.5 percent. Canada’s federal government initiated the increase as an annual adjustment, based on the rate of inflation. The decision to increase the excise tax in this manner was made in 2017 and was part of the budget that year- a year that witnessed a 2 percent increase in the tax.

While the increase is slightly smaller than it was last year, it has still left a foul taste in the mouths of Canada’s beer and wine drinkers. In response to the tax increase, Beer Canada is calling on the federal government to end the tax, pointing out that Canadians already pay high taxes on the beverage they love. The Canadian Taxpayers Federation has similar issues with the tax and has initiated a similar campaign to bring this inflation- adjusted tax to a quick end.

Aaron Wurdick, Federal Director of the Canadian Taxpayers Federation, objects to the tax for different reasons, chief among them the fact that the tax is automatic and takes nothing else into consideration.

“Automatic tax hikes set a dangerous precedent that should concern all Canadians,” said Wurdick.

Wurdick went on to say that having tax increases based on a formula is problematic because it means no discussion/debate, making it easy to conceal the changes.

“Tax increases are a political choice, and politicians who make that choice should be transparent about it each and every time, rather than bury them in a legislative formula,” Wurdick explained.