Canada caps alcohol tax increase until 2026

The Canadian government has opted to limit the annual rise in alcohol excise taxes to 2 percent until 2026. This decision replaces the previous plan, which involved a 4.7 percent increase tied to inflation set to take effect on 1st April 2024.

In addition to the tax cap, the government has introduced measures to assist local craft breweries. They have announced a two-year reduction in the excise duty rate, halving it for the first 15,000 hectolitres of beer produced.

These intiatives aim to support the alcohol industry and provide relief to businesses amidst economic challenges. This move follows lobbying efforts from the alcohol industry to halt the scheduled tax hike before the April deadline.