Another ‘beer tax’ increase is coming on April 1, amid calls to cancel it

On April 1, a tax increase on alcohol known as the "beer tax" will come into effect, meaning Canadians may soon pay more for their beverage of choice.

It is no April Fools’ joke. On April 1, a federal tax increase on alcohol sometimes known as the “beer tax” is scheduled to come into effect, meaning Canadians could soon pay more for their alcoholic beverage of choice.

A Conservative MP is calling on the Canadian government to stop the raise.

The alcohol excise tax is set to go up by 4.7 per cent, which Kelowna-Lake Country MP Tracy Gray says will cost Canadians about $100 million extra in 2024-25.

She said in a post on her website that many small local businesses in her district are concerned about the tax and how it will affect their bottom line.

“This excise tax increase comes at a time when our local beverage producers and those in the hospitality industry, such as restaurants and pubs, are already grappling with rising costs of everything including raw materials, packaging, energy, rent, and transportation,” she said.

“Many have incurred extra debt loads and have not seen sales return to 2019 levels.”

On Friday, Ontario halted its own scheduled 4.6 per cent increase of its version of the federal tax, as well as LCBO mark-up rates that were set to go into effect on March 1. It is implementing a two-year freeze on the provincial tax increase that automatically would have increased based on the rate of inflation.

Policies around alcohol prices and accessibility have been a big selling point for Premier Doug Ford’s government, with it moving to expand access to alcoholic products to convenience stores in the province and Ford’s “buck a beer” previous campaign promise.