Federal government pauses alcohol excise tax for next 2 years

Federal taxes on alcohol will stay put for the next two years.

The annual alcohol excise tax is tied to inflation and was supposed to increase to 4.7 per cent on April 1.

Over the weekend, Finance Minister Chrystia Freeland announced that the tax on beer, spirits, and wine will be capped at 2 per cent for the next two years.

The excise duty rate on the first 15,000 hectolitres of beer made by local craft breweries will be cut in half for two years.

“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,” Freeland said.

The province estimates the new measure could save small breweries up to $86,952 in taxes.

READ MORE: Ontario budget set for March 26; minister says no tax increases