Thursday, March 4, 2021

LIBERALS' ADDICTION TO TAX ON WINE, SPIRITS & BEER

   In 2017 the federal government’s budget included a one-time two per cent increase in the excise tax on beer, spirits and wine, but it also included a measure to increase the tax further each year on April 1, tied to the overall rate of inflation.
    The legislation does not allow the tax to decrease. It can only go up, up, and further up.
   If you’re on the side of the coin that believes government needs ever-increasing sums of money from Canadians, then you likely think (or at least thought) the policy was brilliant. Without any new legislation needing debate, scrutiny, or passage through Parliament each year, governments can quietly raise taxes on Canadian consumers. No muss, no fuss.
   However, Canadians who think they’re already taxed enough might have a different take. According to industry associations, 47 per cent of the price you pay for beer is tax. The tax on wine amounts to about 65 per cent, and a whopping 80 per cent of the retail price of spirits is tax. That adds up to about $20 billion in tax dollars flowing to our governments each year. (This is based on 2018 numbers; it’s likely slightly more today.)


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