Restaurants and bars brace for biggest alcohol tax jump in 40 years

Canada's restaurant industry is bracing for the biggest jump in the country's alcohol excise duty in more than 40 years, spurring warnings the tax hike could force some bars and restaurants out of business.

"Any increase at this very vulnerable time for our industry is just another blow while we're down," said Brenda O’Reilly, the owner of multiple restaurants and a brewery in St. John's, N.L. 

"It's like death by a thousand cuts."

Bar and eatery operators across Canada have endured lockdowns, labour shortages, supply chain mayhem and soaring costs for everything from payroll to cooking oil. Rising inflation has also softened demand as some consumers stay home to save money.