Letter to Federal Gov’t: Excise Duty Escalator on Beer, Wine & Spirits

requesting that the Government of Canada suspend the alcohol escalator tax for the next two years, or until inflation normalizes
 

Letter to Federal Gov’t: Excise Duty Escalator on Beer, Wine & Spirits

Jul 28, 2022 | Federal Advocacy, News

requesting that the Government of Canada suspend the alcohol escalator tax for the next two years, or until inflation normalizes

The Hon. Chrystia Freeland
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario K1A 0A6

Dear Minister Freeland:

EXCISE DUTY ESCALATOR ON BEER, WINE & SPIRITS

The Thunder Bay Chamber of Commerce represents nearly 800 Member businesses and their 20,000+ employees. We are writing on behalf of local beer producers and the restaurants and hospitality businesses across our region that depend on the sale of their products. We join our colleagues at the London Chamber of Commerce in requesting that the Government of Canada suspend the alcohol escalator tax for the next two years, or until inflation normalizes. If the escalator is not suspended, the annual tax increases will have a devastating effect on these businesses.

As you know, Canada already has some of the highest alcohol taxes in the world and the alcohol escalator tax has built-in increases which occur every April. The annual increase is tied to inflation and is based on calculations that run from September to September. In a typical year, this increase is between 1.0 and 2.4%, however this year we have seen significant inflation and the tax increase in 2023 is forecast to be between 5.9% and 6.5%. Such an increase would extract an estimated $130 million in new taxes from Canada’s beer, wine and spirits sector in 2023 alone and could have a catastrophic effect on beer, wine and spirits producers. It will also have a knock-on effect on the restaurant and hospitality sector and will ultimately impact consumers who are already experiencing extraordinary price increases at the cash register.

At a time when governments at all levels are looking for ways to reduce the tax burden on Canadians, we think our request is both reasonable and timely. Thank you for considering this request and we look forward to your response.

Sincerely,
Charla Robinson
President

c. Hon. Patty Hajdu, MP Thunder Bay-Superior North
Marcus Powlowski, MP Thunder Bay-Rainy River

latest news

Call for Candidates: Thunder Bay Airport Authority Board Appointee

The Thunder Bay Chamber is now accepting expressions of interest for candidates for consideration by the Thunder Bay International Airports Authority Board of Directors for a three-year term to expire October 1, 2027. All interested candidates must be a Member in Good Standing with the Thunder Bay Chamber of Commerce.

BREWHA FESTIVAL Returns To Prince Arthur’s Landing

THUNDER BAY, June 11, 2024:  Experience the ultimate weekend of craft beer, delicious food, music, and more on the shores of Lake Superior. BrewHa Festival presented by ITEC highlights the finest flavours in Thunder Bay, Northwestern Ontario and beyond at Prince...

2024 Secondary School Scholarship Recipients

The Thunder Bay Chamber of Commerce is pleased to announce that two scholarships have been awarded to local graduating high school students pursuing further post-secondary education in Thunder Bay. The Women in Trades Scholarship valued at $1,500 is sponsored by Itec...

Share This