The Canadian Craft Brewers Association and the Coalition of Canadian Independent Craft Brewers welcomes the news that craft breweries will receive a significant excise tax reduction on their first 15,000 hectolitres of production.
This change acknowledges the urgency to support Canada’s smaller breweries, which represent over 20,000 industry jobs, according to a recent Economic Impact Study conducted by MNP. Independent craft breweries produce 17% of Canada’s beer, yet create over 60% of the jobs. Recent data from Innovation Science and Economic Development Canada confirmed that in 2022, 63% of the close to 900 breweries in Canada producing less than 15,000 hectoliters of beer were not yet profitable. A significant barrier to profitability is the amount of provincial and federal markups and taxes small Canadian brewers pay.
“The recent announcement demonstrates the Federal Government’s awareness of the critical importance of lessening the tax burden placed on Canada’s locally owned and operated craft breweries,” says CCBA Executive Director Christine Comeau. “Although this does not address the independent brewers producing more than 15,000 hectolitres, this is a welcomed and important first step.”
“We applaud the Federal Government’s recent announcement, but recognize there is still more work to be done to modernize the excise tax schedule to support the larger independent craft brewers,” continues Brad Goddard, Chair of the Coalition of Canadian Independent Craft Brewers. “More than 60% of the country’s craft beer production comes from breweries over 15,000 hectolitres and with further excise tax reductions for these independent breweries they will also be able to significantly contribute to an increase in jobs, beer production, and tourism across Canada.”
About the CCBA
The CCBA-AMBC exists to promote and protect the interests of over 1100 small and independent Canadian craft breweries, brewpubs, and their supplier partners. We are constituted as a federation of provincial craft brewers associations. Our brewery members are from every province and territory in Canada.
About the Coalition of Canadian Independent Craft Brewers
The Coalition members represent larger scale craft breweries in Canada that have made a substantial economic commitment in their breweries to promote job creation, investment, and economic growth. We’re handcrafted in a high-volume world, and we’re proud of it. Our industry leaders have always believed that to raise one glass is to raise the entire sector.
SOURCE: The Canadian Craft Brewers Association
PHOTO CREDIT: The Canadian Craft Brewers Association