Conservative Leader Pierre Poilievre has pledged to eliminate the automatic annual tax increases on alcohol, rolling rates back to 2017 levels in a move aimed at lowering costs for Canadians and supporting businesses.
Speaking on April 1, the same day the Liberal government implemented its latest alcohol tax hike, Poilievre criticized what he called an undemocratic and burdensome policy.
He argued that the escalator tax — introduced under Justin Trudeau and continued under Liberal leadership — has driven up costs for consumers and placed financial strain on restaurants, breweries, wineries, and distilleries.
“This tax adds tens of millions of dollars in costs across the alcohol supply chain every year, making it harder for restaurants to turn a profit and harder for local producers to compete,” Poilievre said.
“Even worse, it increases automatically — without a vote in Parliament.”
According to the Conservatives, the latest tax increase will cost Canadians an additional $40 million in 2025-26. Since its introduction, the escalator tax has reportedly amounted to nearly $900 million in extra costs. Taxes on alcohol now make up nearly half the price of a typical drink, a figure Poilievre says is unfair to consumers and businesses alike.
“When you buy a beer today, you might think that $10 goes to the brewer or the bar. In fact, more than half goes to the government, and every year it gets more expensive,” he said.
Poilievre vowed that a Conservative government would end automatic tax increases, arguing that Canada cannot afford another Liberal term. He framed his broader economic vision as one that prioritizes self-reliance and competitiveness, pledging to build what he called an “economic fortress” for the country.
The Canadian Taxpayers Federation welcomed the announcement.
"Poilievre just promised major alcohol tax cuts and taxpayers will cheers to that," said CTF Federal Director Franco Terrazzano.
"Poilievre’s tax cut will save Canadians money every time they have a cold one with a buddy or enjoy a glass of Pinot with their better half and it will give Canadians brewers, distilleries and wineries a fighting chance against tariffs."
"Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop."
"If politicians think Canadians aren’t paying enough tax, they should at least have the spine to vote on the tax increase. Poilievre is right to end the escalator tax and all party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol tax hikes."
