Article content continued

How is Canada’s beer industry being severely threatened in 2018 by runaway taxes?

“Higher taxes mean higher beer prices, which is going to hurt our customers and drive down sales. We’re already at a national average tax rate of 47%, which means 47% of the price of beer is government tax, and over the last 10 years, we’ve seen a 10% decline per capita consumption, our sales are flat and we’ve seen a drop in the number of jobs within the beer economy. It’s not going to be good for beer drinkers or our industry.”

Right now, Canadians pay 47% tax – one of the highest rates in the world – on their beer. What happens on April 1 in terms of taxes increasing?

“Every April 1, not just this coming April 1, the federal excise tax on beer is going to go up. There’s going to be no conversation, no debate, it’s just going to happen. It’s going to be based on the rate of inflation. What’s really problematic is it’s 1.5% increase on the excise tax that is in beer and then on top of that, you’ve got liquor board markups, GST and PST. It’s an amplification of tax at the federal level that will roll on to the rest of the taxes.”

Photo by Clifford Skarstedt / Clifford Skarstedt/The Examiner

Is there a cap on how much tax the federal government can impose?

“There is no cap and there is no requirement for any conversation, discussion. It’s very troubling to you.”

Since 2012, when provincial taxes have been imposed on beer at different rates, depending on where you live, what impact has that had on the beer industry?

“Taxes at the provincial level have been different forever. Each province has their own unique taxation structure. They all have a PST equivalent, but they also have other fees and levies. What we’ve seen over the last five years is an aggressive mark up in the rate of taxation at the provincial level – 58% in Quebec, 18% increase in Ontario, Saskatchewan by 24%.”