Alcohol prices across the country will not be increasing as expected next month.
The government has agreed to temporarily halt excise tax on beer, wine and spirits, according to the 2023 federal budget report released yesterday.
Excise fees on all alcoholic products are being capped for one year at two per cent, starting Apr. 1, 2023, instead of the planned 6.3 per cent increase.
On Feb. 21, Restaurants Canada, a not-for-profit representative of the food and beverage industry, called on the federal government to defer tax increases for businesses so they can recoup profits during the challenging economic crisis.
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Following the 2023 budget announcement, Restaurants Canada applauded the government’s cap on alcohol taxes,
“There is still much needed to revive our sector, and we look forward to working alongside the Canadian Government to get there,” the non-profit said in a tweet on Tuesday.
The Excise Act states alcohol excise duties are automatically linked and rise with the total Consumer Price Index (CPI) at the start of each fiscal year.