The Canadian Revenue Agency published notice of an excise tax increase of 4.7% effective April 1, 2024. Today, the Beer Store launched a consumer awareness campaign in all its stores province-wide regarding this beer tax increase.
“TBS believes it is important to tell our customers of the Government of Canada’s decision to increase beer taxes by 4.7% on April 1,” said Roy Benin, President, and CEO of The Beer Store.
With consumers seeing higher prices on daily purchases, The Beer Store wants consumers to be aware of the increase in beer taxes and its potential effect on retail prices.
Under Canada’s Excise Act, excise tax increases every year based on inflation. Given persistently high inflation levels, this year’s increase will be the biggest in 40 years. Last year, the Government of Canada capped the excise tax increase at 2%, in line with the Bank of Canada’s CPI target.
“We applaud the Ontario government’s announcement of a two-year freeze on provincial beer taxes,” said Benin. “We urge the Government of Canada to implement a similar freeze, beginning with not increasing the excise tax planned for April 1 or, at a minimum, impose a 2% cap.”
In Ontario, typically, 43% of the retail price of beer is provincial and federal taxes.
