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Bad News for Consumers of Alcohol: Excise Tax ‘escalates’ each year – forever

Canada’s 2017 Federal Budget, proposes a 2% increase in the excise duty on Canada’s highest value added products –wine, beer and spirits. Hidden below the surface, is the fact the government wants to amend the Excise Act to legislate the annual indexation of wine, beer and spirits excise duty to the Canadian Price Index (CPI) effective April 1, 2018. In other words, it wants to increase the rate every year. Ultimately, the consumer pays the tax. True, this alcohol manufacturer’s tax hurts the hospitality industry – the restaurants, pubs, hotels, golf clubs, halls and bars who offer you alcohol. But, as with all businesses, costs are ultimately paid by consumers – a fact of life most of us understand and respect. And, in the case of restaurants and pubs and bars and hotels and wineries and ….this escalated excise tax on alcohol really impacts – negatively – their operations, including (especially?) the small neighbourhood establishments we…