New Federal Alcohol Tax Increase Starts Tomorrow
The increase in the federal excise tax on alcohol takes effect tomorrow in Newfoundland and Labrador. Effective April 1, the tax will rise by two percent. This increment varies in its impact on consumers, depending on the specific alcoholic product purchased.
Impact of New Federal Alcohol Tax Increase
The Canadian Taxpayers Federation has openly opposed this tax hike. The organization, led by Franco Terrazano, highlights that taxes represent approximately 46% of the total cost of alcohol in Canada. This statistic is considerably higher than in other countries.
Comparative Tax Rates
- United States: Taxes account for about 17% of beer costs.
- Europe: Taxes average around 30% of beer costs.
Franco Terrazano criticizes the excessive tax burden, emphasizing that both federal and provincial rates in Canada are significantly elevated. This ongoing increase, initially implemented by former Prime Minister Justin Trudeau in 2017, was legislated as an automatic annual hike, bypassing parliamentary approval.
As consumers head to stores, they will encounter the effects of the new federal alcohol tax increase, impacting everyday purchases. The price changes will be noticeable, yet the extent will vary widely based on the specific types of alcohol being sold.
