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Alcohol Prices In Canada Are Set To Rise On April 1st

Alcohol Prices In Canada

Photo: Molson Coors / Facebook

This isn’t some April Fools’ joke. Alcohol prices in Canada are set to rise on April 1st and numerous groups are already opposing this decision.

According to the Government of Canada, under the Excise Act, 2001, rates are “adjusted annually every April 1 based on changes to the Consumer Price Index (CPI)”.

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Spirits Canada is calling for an end to this “job-killing and pocket-picking annual automatic escalator tax”.

“Canada already imposes amongst the very highest taxes on alcohol in the world, and, in the case of spirits, 80% of what you pay are taxes”, said Jan Westcott, President & CEO of Spirits Canada.

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Alcohol Prices In Canada

Unless the escalator tax is repealed, taxes on alcohol in Canada will rise on April 1st without a vote in Parliament – the third increase in 3 years. Federal excise duty revenues on spirits rose 17.8% just last year.

As the sole national trade association representing the interests of Canadian spirits manufacturers, exporters, marketers and consumers, Spirits Canada is worried about the negative effects yet another tax hike will have.

“Today’s escalator tax is having the same negative effect it had when Canada last experimented with it in the 1980s; sky high prices, a freeze on investment, closed distilleries, lost jobs and Canada losing ground versus our international competitors”, said Mr. Westcott.

Westcott wants to see an immediate repeal of the escalator tax as a first step. He believes Canadian alcohol tax policy is long overdue for a review and change is needed.

As for Canadians across the country, they’ve have voiced their support for repealing the escalator tax through participation in the spirits’ #NotOnMyTab and brewers’ #AxeTheBeerTax awareness campaigns.

Alcohol prices in Canada will automatically increase on April 1st unless parliament votes to end the tax.

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