OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to cancel its plan to increase alcohol taxes while also hiking salaries for members of Parliament on April 1.

“The very same day MPs take more money out of Canadians’ pockets they’ll be stuffing more into their own and that’s wrong,” said Franco Terrazzano, CTF Federal Director. “Prime Minister Mark Carney needs to the end the undemocratic tax hikes and the automatic pay raise culture in Ottawa.”

The federal government 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.

MPs also take pay raises each year on April 1. This year’s pay raise will range from $8,800 to $17,600, according to CTF estimates. 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.

“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 don’t deserve raises when they make life more expensive with tax hikes.”