The price of alcohol is increasing with an excise tax hike in Ontario and the rest of Canada coming into effect in about a month.
As of Apr. 1, a federal tax increase of 6.3 per cent is expected to impact the price of beer, wine and spirits in the province.
The excise tax is imposed in Canada on spirits, wine, beer, and tobacco products by the federal government and automatically rises every year with inflation rates.
The Canadian Centre on Substance Use and Addiction issued new liquor consumption guidelines, in a report funded by Health Canada in Feb. 2023.
READ MORE: Alcohol in Canada should have warning labels, according to experts. Here’s why.
The report found having more than two drinks per week may result in moderate health risks, relating alcohol consumption to cancer. Previous guidelines in 2011 advised men could have up to 15 drinks per week and women up to 10 with low health risks.
Widespread attention gardened with new data may change alcohol consumer habits in addition to the hardships faced by the food and beverage industries throughout the pandemic.
“The pandemic has dramatically cut bar and restaurant sales for all beverage alcohol. Another escalator tax hike will increase hospitality industry costs, reducing their ability to attract customers and retain employees while they try to survive and recover from government-imposed shutdowns, “ Perrin Beatty, president and CEO of the Canadian Chamber of Commerce said, in a news release.
Canada’s Chamber of Commerce has issued a motion to repeal or freeze the automatic tax increases.
Restaurants Canada, a non-for-profit representative of the food and beverage industry, is also calling on the federal government to defer the tax increases to allow businesses to stay afloat as it would be difficult to “absorb another federal tax increase at this vulnerable time.”
This is the largest beverage alcohol tax increase Canada has seen in 40 years, according to Restaurants Canada.
