Ottawa Extending 2% Alcohol Tax Hike Cap for Another 2 Years

Ottawa Extending 2% Alcohol Tax Hike Cap for Another 2 Years
Canned beers are poured into a plastic glass at a vending stand at the Rogers Centre in Toronto on Oct. 9, 2016. The Canadian Press/Chris Young
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The federal government is set to extend its cap on an annual alcohol tax increase for another two years in a bid to rein in costs facing Canada’s brewers, wineries and distilleries.

Excise taxes on booze had faced annual increases pegged to inflation on April 1 each year, but the Liberal government has temporarily capped those hikes at two per cent since 2023.