EN FR

Cancel the alcohol tax and politician pay hike

Author: Franco Terrazzano 2026/03/30

OTTAWA, ON: The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately cancel the alcohol tax increase and member of Parliament pay raise that are both set to happen on April 1.

“Politicians shouldn’t be taking more money out of Canadians’ pockets and stuffing more money into their own,” said Franco Terrazzano, CTF Federal Director. “It looks like the government is planning another cruel April Fools’ joke on taxpayers: Higher pay for politicians and higher taxes for the rest of us.

“Carney needs to immediately cancel his plan to hike alcohol taxes and MP pay.”

The federal government is increasing alcohol taxes by two per cent on April 1. This alcohol tax hike will cost taxpayers about $41 million in 2026-27, according to industry estimates.

First passed in the 2017 federal budget, the alcohol escalator tax automatically increases excise taxes on beer, wine and spirits every year without a vote in Parliament.

Since being imposed, the alcohol escalator tax has cost taxpayers about $1.6 billion, according to industry estimates.

MPs also take pay raises each year on April 1. Leger polling shows 80 per cent of Canadians oppose this year’s MP pay raise.

A backbench MP’s salary is currently $209,800. A minister collects $309,700, while the prime minister takes home a $419,600 annual salary.

The federal government stopped the automatic MP pay raise from 2010 to 2013.

“Carney’s alcohol tax hike will make life more expensive and make it harder for Canadian restaurants, breweries and pubs to survive,” Terrazzano said. “MPs are already paid nearly three times more than the average Canadian worker, plus they get expenses, a taxpayer-funded pension and other perks.

“How can MPs take another pay raise off the backs of their struggling constituents and still sleep at night?”


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<