Hamilton brewers say Ontario alcohol tax cuts will help industry grow

If you’re cracking open a beer this weekend, it may have just become cheaper to make.

As of today, Ontario has slashed tax rates and LCBO mark-ups on local microbrews, spirits and wines.

“Very exciting to see that there’s finally been some movement on the tax file,” Brad Clifford, owner of Clifford Brewing said.

“Small Ontario craft brewers have been paying some of the highest taxes in all of Canada in the province of Ontario, so we’re very excited to see some movement and a little bit of tax relief that will definitely go a long way to help the industry.”

The Ontario Craft Brewers Association has called it a “gamechanger,” saying the change will “put the industry on a path that will see breweries grow, create more jobs, invest in their communities, and get more local beer on store shelves.”

“Over the last five years, especially the last two, three years, you’ve been seeing a lot of craft breweries closing up due to the constant rising costs, threat of tariffs, rising labour costs,” Clifford says.

The Ministry of Finance says these measures will protect Ontario businesses from the threat of U.S. tariffs. They include:

• A 50 per cent cut to the spirits basic tax rate at on-site retail stores;
• A 50 per cent cut to the basic tax and LCBO mark-up rate for beer made by microbreweries;
• A 47 per cent cut to the LCBO mark-up on cider;
• And between 21 – 50 per cent in cuts for ready-to-drink wines and spirits.

Does this mean it will be cheaper on the customer? Collective Arts Brewing CEO Matt Johnston says it’s hard to tell what will happen to retail prices, but the changes will bring meaningful growth to the brewing community.

“I don’t know if you’ll see cheaper rates, but you will see a more successful, thriving local craft beer community,” he said.

“It does make a big difference. It’s a piece of the puzzle, as everyone looks to deal with inflation, interest rates, tariffs, and all those pieces that are playing into it in order to be successful, thrive, and continue growing.”

Many in the region say they don’t mind what the price is when it comes to made-in-Ontario alcohol.

“It’s a little bit more expensive, but it’s worth it,” one community member said.

READ MORE: Hamilton commits to ‘buy local’ in future contracts ahead of new U.S. tariffs