Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Rechie Valdez, Minister of Small Business, announced that the federal government is delivering thousands of dollars in alcohol excise duty relief to Canadian businesses, particularly local craft breweries.
The government is proposing to:
- For two additional years, cap the inflation adjustment at two per cent for beer, spirit, and wine excise duties; and,
- For two years, cut by half the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada, to provide the typical craft brewery with up to $86,952 in additional tax relief in 2024-25.
To urgently deliver this tax relief to local craft breweries who are facing surging production costs, these measures would be effective for two years starting on April 1, 2024.
From stabilizing prices to help Canadians keep more of their money, to ensuring Canada’s small businesses have the support they need, the government’s economic plan is creating more jobs and building an economy that works for everyone.
Quotes
“Canada’s small craft brewers are among the finest in the world, and are an important contributor to our growing economy by creating jobs in communities across the country. Today’s announcement is good news for Canadians and for the craft breweries they visit, which will now benefit from thousands of dollars in new tax relief every year.”
“This announcement is great news for breweries, distilleries, and wineries from all across Canada who contribute so much to our national economy. Not only are they producing incredible products, they are also small businesses who are creating jobs and opportunities in their local communities. Today’s relief on alcohol excise taxes will allow craft breweries to spend less on duties, and more on what matters most: growing and innovating their small businesses.”
Quick Facts
- The Canadian Craft Brewers Association estimates there are currently over 1,100 small and independent breweries in Canada, of which 95 per cent generated less than $10 million in annual revenue.
- According to Statistics Canada, in 2022, breweries employed nearly 23,000 Canadians.
- In 2018, the Conference Board of Canada reported that the beer industry supported 149,000 Canadian jobs, paid $5.3 billion in wages, and contributed $13.6 billion to Canada’s GDP in 2016.
- As of July 1, 2022, the federal government repealed the excise duty on non-alcoholic beer to encourage growth in the beer industry and provide Canadians with more non-alcoholic options.
- In Budget 2023, the federal government announced it would temporarily cap the inflation adjustment at two per cent for beer, spirits, and wine excise duties, for one year only, as of April 1, 2023.
- On March 1, 2024, the federal government extended the Wine Sector Support Program to provide an additional $177 million over three years, starting in 2024-25, to help the Canadian wine sector improve its competitiveness and adapt to the challenges it faces. This built on the $166.2 million originally announced in June 2022.
Related Products
- Backgrounder: Supporting Canadian businesses with alcohol excise duty relief
- Legislative Proposals Relating to the Excise Act and the Excise Act, 2001