Ontario craft brewers call for fewer taxes, sped-up review

The Ontario Craft Brewing Association is warning that some of the province’s 342 craft brewers may be forced closed if the province doesn’t review and eliminate what the association calls stifling alcohol taxes.

Brad Clifford opened Clifford Brewing Company in East Hamilton back in 2015 and like many small businesses, the COVID-19 pandemic made things difficult.

“A lot of rising costs, rising interest rates, it’s a very capital intensive business, craft brewing.” said Clifford.

The impacts being felt by craft brewers have had alarming consequences.

“They’re closing right now at a pretty alarming rate. small craft breweries are closing, I heard of another one that’s closing.”

That’s why Clifford, along with the Ontario Craft Brewers Association are calling on the province to speed up its review of alcohol taxes – saying the current system is hurting the industry.

“We pay the highest beer tax in Ontario than brewers do across the entire country.”

The Ontario Craft Brewers Association’s top request to the government is to eliminate a nine cent tax on beer cans.

“That’s a tax on any beer that goes into an aluminum can, and all craft brewers put their beers in aluminum cans, and we’re all subject to this punitive nine cent beer can tax, whereas soda producers, energy drinks, they do not pay that tax.”

Clifford says his business could save tens of thousands of dollars if the tax were eliminated.

Other large breweries, like Nickel Brook Brewing Company, agree.

“It would probably put 120-thousand-dollars in our pocket, and we would use that to run the brewery and make improvements with equipment, like we need to make improvements at our main plant, but we can’t right now because of the state of the economy.” said John Romano, owner of Nickel Brook.

A spokesperson for the Ministry of Finance said he could not comment on what may or may not be in the spring budget, but the board says, “in the months ahead the government will continue to meet and consult with industry partners and others on an expanded alcohol marketplace that ensures choice, competition and convenience while upholding Ontario’s high standards of social responsibility.”

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