Canadians will pay more for alcohol starting this week

You may notice a slight uptick in price the next time you grab a beer, as the government is moving ahead with an increase to the alcohol tax.

There's no escaping the increasing cost of pretty much everything these days, as an estimated two per cent alcohol tax increase will be implemented on Wednesday, April 1. The alcohol tax, or the excise duty tax, goes up every year and is based on changes to the consumer price index. It will apply not just to beer but also to wine, spirits, and tobacco.

So what exactly are federal excise duties?

An excise tax or duty is a tax that the government charges at the manufacturing stage or packaging stage for domestic goods, as well as on imported products. For packaged beer, the tax is charged per hectolitre, depending on the alcohol content.

For example, beer with more than 2.5 per cent absolute ethyl alcohol by volume will see tax rates increase by $37.69 (up from $36.95 the previous year), while beer with over 1.2 per cent absolute ethyl alcohol by volume will only see a tax increase of $3.128 (up from $3.067).

However, for the average Canadian picking up a can of beer at their local liquor store, the price increase could only amount to a few cents per can, depending on the type of product.

A roughly two per cent increase is moderate, considering April 1 marks the end of a two-year cap on the alcohol excise tax. In 2024, the government announced that it would cap the rate at two per cent for two years rather than the planned 4.7 per cent increase.

In a post on X, Conservative Leader Pierre Poilievre criticized the tax increase for implementing it "without a parliamentary vote."

"That means higher prices for workers and more costs for our local brewers, wineries, and distillers," he stated.

Beer Canada, an association for Canadian brewers, also shared a post criticizing the increase.

"This policy is putting pressure on jobs and driving up costs for Canadian businesses and consumers," stated Beer Canada, an association for Canadian brewers.