Skip to content

Stevenson slams Liberal alcohol tax, supports Conservative plan to repeal it

Conservative leader Pierre Poilievre promises to return the tax rate to 2017 levels 'so Canadians pay less and businesses earn more'
20240822lcbosignageka01
LCBO retail signs in downtown Toronto.

Local Conservative candidate Hugh Stevenson says he agrees with his party's plan to reverse a yearly tax increase on alcohol that was put in place by the Liberal government eight years ago.

In 2017, the Liberal government under former Prime Minister Justin Trudeau began a yearly increase in the tax paid by consumers on various alcohol products, including beer, wine and spirits.

Those increases are automatic and tied to the rate of inflation. On April 1, under Mark Carney's watch, the most recent increase went into effect on alcohol sold in Canada.

"This tax is an affront to Canadians both as business owners and consumers," said Stevenson in a prepared statement.

In a press release sent Wednesday, the Conservative Party said the tax adds tens of millions of dollars in costs across the supply chain, making it more difficult for businesses to turn a profit and for local producers to compete.

"Automatic annual Liberal tax hikes are an affront to our democracy because they allow the government to raise taxes without Parliament’s approval," said the Conservative release.

Conservative Leader Pierre Poilievre promises to return the tax rate to 2017 levels 'so Canadians pay less and businesses earn more.'

When the first two per cent tax was introduced in 2017, the government said it would add about a penny to the price of a litre of wine and about a nickel to a case of beer, before provincial mark ups and GST. At the time, critics argued the end cost increase to consumers would be closer to 12 cents for a case of beer.

Asked for comment about the Conservative leader's plan, local Liberal incumbent Terry Sheehan emailed a response that didn't directly address the alcohol tax increases.

"By Canada Day we will remove interprovincial trade barriers that will make it easier for Canadian breweries and wine makers to trade their goods across the country, and bring down costs," Sheehan said.

Local NDP candidate Laura Mayer did not respond to an emailed request for comment for this story.

Last week, the Canadian Taxpayers Federation called on all party leaders to end the yearly tax increase on alcohol.

“Instead of making life even harder for brewers, distillers, pubs and restaurants by layering tax hikes on top of tariffs, the federal government should cut taxes to make Canadian businesses more competitive," said Franco Terrazzano, CTF federal director.

One estimate puts the cost to taxpayers for the yearly tax increases at $900 million.

“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” said Carson Binda, CTF director in B.C.

“All federal party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol escalator tax.”



Discussion

If you would like to apply to become a Verified Commenter, please fill out this form.