The cost of wine, beer, and spirits is rising across Canada. Consumers and producers weigh in on the tax hike as we track down the cheapest way to buy booze on a budget.
Canadian liquor tax hike of 6.3% coming in April
As of April 1, 2023, a federal excise tax will raise the cost of alcohol across Canada by 6.3%. The tax was introduced in 2017 by then finance minister Bill Morneau. It's colloquially called the alcohol escalator tax, as it automatically adjusts every April 1, based on the Consumer Price Index.
When inflation hangs out around the 3% benchmark targeted by the Bank of Canada, the alcohol tax isn't particularly noteworthy. But throw the white-hot inflation rates of 2021 and 2022 into the mix, and you've got a tax hike akin to sprinkling salt in an open wound.
Canadian liquor tax hike of 6.3% coming in April
As of April 1, 2023, a federal excise tax will raise the cost of alcohol across Canada by 6.3%. The tax was introduced in 2017 by then finance minister Bill Morneau. It's colloquially called the alcohol escalator tax, as it automatically adjusts every April 1, based on the Consumer Price Index.
When inflation hangs out around the 3% benchmark targeted by the Bank of Canada, the alcohol tax isn't particularly noteworthy. But throw the white-hot inflation rates of 2021 and 2022 into the mix, and you've got a tax hike akin to sprinkling salt in an open wound.
Dean Tudor, Prof Emeritus T'karonto Metropolitan University (formerly Ryerson) School of Journalism
Treasurer of Wine Writers' Circle of Canada http://www.deantudor.comhttp://gothicepicures.blogspot.com
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