Alcohol Is About To Get More Expensive In Canada & It's Going To Make The Hangover Worse
Now you'll have to pay more for that morning-after headache. 🫣
The liquor section of a store in Montreal.
If cracking open a cold one is your idea of a good time, then look out because the price of alcohol in Canada is set to go up in 2023.
Each year, the rate of tax on spirits, wine, and beer is adjusted annually, and the percentage increase is based on changes to the Consumer Price Index.
Considering the record-high inflation rate Canada has seen over the last year, there's bad news ahead.
On April 1, the latest federal alcohol tax hike will go into effect, and according to multiple reports, the tax on beer, wine and spirits will increase by a whopping 6.3%.
This is the largest beverage alcohol tax increase Canada has seen in 40 years, according to Restaurants Canada.
\u201cThere is a 6.3% increase to federal beverage alcohol excise duties, scheduled for April 1, 2023. This is the LARGEST beverage alcohol tax increase Canada has seen in 40 years.\u201d— Restaurants Canada (@Restaurants Canada) 1676991648
The reason for this increase is due to a change in the Excise Act that was introduced by the feds in 2017. The change allows the federal government to raise taxes on alcohol in response to inflation.
According to CTV, the overall increase in the rate since this amendment has been 18.42%.
While last year's hike was 2.4%, this year's upcoming tax increase will be much more pronounced.
The escalator tax, as it's known, will primarily affect businesses and breweries, and they may have no other choice but to pass on the extra costs to consumers.
NerdWallet suggests that the average Canadian will pay around $52.73 extra each year on liquor, thanks to the new alcohol tax hike.
Of course, this is only a portion of the tax added to the final product, with provincial tax also adding to the overall price.
The upcoming hike has been criticized by Beer Canada — a trade association representing beer makers — who called for a freeze on the alcohol tax hikes.
\u201cAccording to @RestaurantsCA this year\u2019s 6.3% federal alcohol tax hike means an additional $30K per annum for the average casual dining restaurant-a number that is simply unachievable for most given the current state of Canada\u2019s hospitality sector. #HereForBeer #FreezeBeerTaxesNow\u201d— Beer Canada (@Beer Canada) 1677078610
"Everything else in Canada is frozen, eh. Freeze the beer tax, too!" the group tweeted.
Earlier this month, Canada's inflation rate for January was released, and the rate has finally dropped to 5.9% from 6.3% in December.
While that is some much-needed respite, the cost of food and groceries is still on the rise.
This article's cover image was used for illustrative purposes only.
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