Alcoholic beverages tax in Canada reaches its record
Restaurant industry is preparing for the largest tax increase in 40 years.
On April 1, Canada faces another increase of alcohol excise tax — up to 6,3 percent. Every year alcohol tax increases within the inflation rate. It is expected that some bars and restaurants will have to leave industry.
"Any increase at this very vulnerable time for our industry is just another blow while we're down," said Brenda O'Reilly, the owner of multiple restaurants and a brewery in Newfoundland and Labrador.
Back in 2021, brewers stood against tax increase, still sufferig the consequences of COVID-19 pandemic. Labor shortages, supply chain disruptions and goods expenses are affecting restaurant industry. In addition, rising inflation is reducing the demand: people choose to stay home and save money.
The Liquor Control Board of Ontario said customers may experience a price increase on select products by the end of April if manufacturers pass along the federal excise tax increase.
