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Federal Alcohol Excise Tax Capped at 2% Until 2026

Federal Alcohol Excise Tax Capped at 2% Until 2026

On March 9th, Federal Finance Minister Chrystia Freeland announced that the federal government will be extending a cap of 2% on the annual alcohol excise tax for beer, spirits, and wine for an additional two years. Initially scheduled to increase by 4.7% tied to inflation on April 1st, the tax hike will now be limited to the lower rate. Additionally, the Minister unveiled tax relief measures for local craft breweries, slashing the excise duty rate on the first 15,000 hectolitres of beer in half for a two-year period.  

TIAO welcomes this move, which is the result of industry advocacy, as it will offer breweries, wineries, and distilleries relief as rising production costs, inflation, and supply chain disruptions contribute to increased commercial costs. However, TIAO will continue to work with our industry partners on tax reform measures to support the growth, competitiveness, and capacity of Ontario craft beverage producers to attract visitation to rural destinations across the province.  

For further information on the alcohol excise tax, please click here.  

 March 14, 2024