Calgary brewers hoping feds will hold the line on beer tax yyc abpoli
The group says it and consumers are already struggling to absorb a 60 per cent increase in Barley prices, a 40 per cent hike in packaging costs and a doubling of transportation expenses.One Calgary craft brewer said he and other members of the Alberta industry don’t have much faith the federal government will hold off on implementing a planned 6.3 per cent hike in its liquor excise tax on April 1.
“We’re not hopeful at all, but would be a wise choice,” said Devon Sidwell, co-founder of ‘Ol Beautiful Brewing Co. located in Inglewood.Costs for his brewery, he said, have increased 30 per cent over the past three years though his business does what it can to limit passing that over to consumers.Article content“We’re concerned that not only will small businesses absorb portions of those taxes, consumers will absorb portions of it, too,” said Sidwell.
Excise duty rates on alcohol have automatically risen at the rate of inflation every April 1 since 2017, though it’s recently received push-back from some MPs, including Calgary Rocky Ridge Conservative MP Pat Kelly, who’s argued the process should be reviewed annually.Recommended from EditorialA group representing smaller brewers said the 6.3 per cent hike is a substantial one that’s too onerous for small start-up businesses and will disproportionately hurt rural areas.
“The vast majority of Canadian craft breweries are less than five years old, and most are not yet profitable. These small businesses are already struggling with inflationary costs, and another tax increase will make it difficult for some to survive,” said Christine Comeau, executive director the Canadian Craft Brewers Association.
Ottawa should instead implement a progressive, revenue-neutral excise tax rate that would be lower for smaller volume producers and extended longer until the maximum rate is reached, she said.
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