The federal government's plan to hike alcohol taxes again is facing backlash from Canadians already struggling with rising living costs. Critics argue that the proposed two per cent federal excise increase on beer, wine, and spirits is ill-timed and could harm the economy. The Canadian Taxpayers Federation is urging Prime Minister Mark Carney to cancel the tax hike set for April 1, citing the burden it will place on taxpayers. Franco Terrazzano, CTF Federal Director, emphasizes the need for tax relief for Canadian businesses rather than further increases. The alcohol escalator tax, introduced in 2017, has already cost taxpayers over $1.6 billion. Unionized brewery workers express concern that the tax hike, combined with tariffs and rising costs, could lead to reduced production and job cuts. They question the justification of taxing a Canadian manufacturing industry at a time of economic uncertainty. The impact of taxes on alcohol prices is significant, with multiple levels of government contributing to the total cost. Critics argue that automatic tax hikes are undemocratic and unaffordable, and call for a vote on any tax increases.
