Canadian government extending 2% alcohol tax hike cap another 2 years

The federal government plans to extend its cap on alcohol tax increases for another two years to ease costs for Canada’s brewers, wineries and distilleries.

Excise taxes on alcoholic beverages are typically adjusted each April 1 in line with inflation. Since 2023, the government has limited those increases to two per cent.

2023 was supposed to be the final year of the cap, but a government official not authorized to speak about the announcement told The Canadian Press that Ottawa is planning to renew the cap through to 2028.

The feds also plan to extend a measure that reduces excise taxes by half on the first 15,000 hectolitres of beer they produce.

Federal conservatives and the Canadian Taxpayers Federation have both been calling on the Liberal government to scrap the planned tax hike on alcohol completely ahead of the April 1 deadline.

With files from The Canadian Press.

READ MORE: Toronto plans to increase transit, close roads to move visitors during FIFA World Cup