Canadian Taxpayers Federation (CTF) is calling on all federal party leaders to oppose the scheduled April 1 alcohol tax hike, urging an end to the so-called “escalator tax” that automatically raises federal alcohol taxes each year without a parliamentary vote.
“In one week, the federal government will hike alcohol taxes again this year,” said Franco Terrazzano, Federal Director of the CTF. “Instead of making life even harder for brewers, distillers, pubs, and restaurants by layering tax hikes on top of tariffs, the federal government should cut taxes to make Canadian businesses more competitive.”
Set to rise by two percent, the upcoming increase is projected to cost taxpayers roughly $40 million in 2025-26, according to estimates from Beer Canada. The escalator tax, introduced in 2017, ties annual excise tax increases on beer, wine, and spirits to inflation and does so automatically—without any debate or vote in Parliament. Beer Canada estimates this policy has already cost taxpayers over $900 million since its inception.
CTF representatives argue that the tax disproportionately impacts Canadian consumers and small businesses already struggling with economic pressures and rising costs. Taxes from all levels of government currently make up approximately half the retail price of alcohol in Canada.
Adding to the burden, the industry is also grappling with significant tariffs, which some brewers have described as “Armageddon for craft brewing.”
“Automatic tax hikes are undemocratic, uncompetitive, and unaffordable, and they need to stop,” said Carson Binda, CTF’s British Columbia Director. “All federal party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol escalator tax.”
With the April 1 increase looming, the CTF is urging Canadians and policymakers alike to push back against the escalating cost of enjoying a homegrown brew or a glass of wine.
