Beer Canada calls on brewers to help stop hidden tax increases

Beer Canada needs the help of Canadian brewers help to stop hidden annual tax increases on beer.

They are calling on everyone within the Canadian brewing community to reach out to their Member of Parliament (MP) to demand the repeal of the escalator tax that is going to impose automatic yearly hikes to excise duty rates on beer.

Luke Harford, president of Beer Canada, explains: “In Budget 2017, the federal government imposed a mechanism that will increase excise duty rates on beer automatically, every year, by the rate of inflation.

“This decision will result in never-ending tax increases on brewers without any thought given to the heavy tax load brewers already bear or the market conditions at the time of these automatic increases.

“The window of opportunity to repeal this escalator is very narrow. We ask that everyone tied to the brewing community take the following two steps as soon as possible and no later than end of day May 30th, 2017.

“We encourage all brewers, their employees and their suppliers to get involved. We want as many people as possible to write their local MP with a request to stop the automatic annual increases on beer’s excise duty rates.”

Step 1:

Copy and paste the below text into an email; fill in the italicized sections; include your corporate logo in your signature.

TO: MP’s EMAIL

CC: richard.maksymetz@canada.ca ; lharford@beercanada.com

SUBJECT: End the federal escalator tax on beer

Dear MP’s NAME,

As my Member of Parliament, I am asking that you speak directly with the Honourable Bill Morneau, Minister of Finance and Prime Minister Justin Trudeau, to tell them that the annual hidden escalator tax imposed on beer under Budget 2017 is bad tax policy that will hurt domestic brewers.

The tax escalator being imposed on beer is not consistent with any element of the Liberal plan to strengthen the middle class, grow Canada’s Agri-food sector, foster innovation, generate employment opportunities for young adults or encourage Canadian exports.

Brewers and their customers already pay their fair share of tax. Beer taxes in Canada are the third highest in the world, averaging 50% of the retail price as it is. The escalator tax on beer proposed in the Budget will cost us jobs, investment and the global competitiveness of domestic brewers.

Finance Canada officials did not assess the impact the escalator will have on the industry or on the demand for beer. This should be reason enough for the Minister to remove the escalator from his Budget. Please tell the Minister and Prime Minister that never ending tax hikes on beer works against people and business in your community.

Thank you,

Step 2:

Call your local MP and repeat the email text live or in a voicemail. Clearly state that the MP should reach out to Bill Morneau, Minister of Finance and the Prime Minister to request that they do not proceed with the introduction of an annual escalator tax on beer production.