Canadian craft alcohol producers seeking excise tax relief in new budget
Global News
Industry representatives say craft producers need relief from excise duties, which went up automatically on Friday for beer, cider, spirits and malt liquor.
Canadian craft alcohol producers are hoping excise tax changes are brewing in the federal finance minister’s office.
Industry representatives say craft producers need relief from excise duties, which went up automatically on Friday for beer, cider, spirits and malt liquor.
A finance committee report on the upcoming budget recommends the government adopt a system similar to the one in the United States to help small Canadian distillers and other craft alcohol producers compete in Canada and abroad.
The craft beer industry was happy to see that – one of only four changes the committee recommended to personal and consumption taxes.
“They understand that our excise rates are way out of whack, certainly compared to the United States and other countries,” said Rick Dalmazzi, executive director of the Canadian Craft Brewers Association.
“So I would say they’re listening to us. Whether or not they’ve got the capacity to do it this year is another question.”
The U.S. Congress changed excise tax rates for brewers and beer importers in 2017.
According to the Beer Institute – a U.S. lobby group – 99 per cent of breweries now pay half as much in excise taxes as a result of the steep drop in tax rates for small producers. The largest producers saw their payments drop by only three per cent.
