OTTAWA, ON: The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately cancel the federal alcohol tax hike that is set to take effect on April 1.

“Canadians are struggling with the cost of everything and Carney shouldn’t make taxpayers pay more for a cold one,” said Franco Terrazzano, CTF Federal Director. “Instead of making life even harder for brewers, distillers, pubs and restaurants, the federal government should cut taxes to make Canadian businesses more competitive.

“Carney needs to cancel this alcohol tax hike now.”

The federal government announced it is increasing federal alcohol taxes again 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.

“We are increasingly concerned that another automatic beer tax increase, layered on top of tariffs, rising input costs, and stagnant sales, could push some breweries to reduce production and cut jobs,” reads a letter from unionized Canadian brewery workers to the federal government. “At a time when Canadians are struggling with affordability and workers’ futures are uncertain, it is difficult to understand how another tax hike on a proudly Canadian manufacturing industry could be justified.”

Taxes from multiple levels of government account for about half of the price of alcohol.

“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” Terrazzano said. “If politicians think Canadians aren’t paying enough tax, they should at least have the spine to vote on the tax increase.”