Annual Liquor Tax Increase Raises Concern

PRINCE GEORGE- If you’ve been to the liquor store this week, you may have noticed prices are higher. That’s because the federal government increases the tax by 1.5 percent every April first. The Liberal government introduced the liquor tax escalator last year, it was made to reflect the rate of inflation. In 2017, the tax went up 2 percent and now it rises by 1.5 percent every spring. It mainly affects breweries that produce a large volume of beer, but a local MP says that will ultimately affect the consumer. “Anytime that we’re raising taxes on consumer products whether that’s alcohol or tobacco or food or our gas, now we’re talking about a carbon tax as well, we know who pays that… it’s not the companies, it’s the consumer,” says Conservative MP, Todd Doherty.

Crossroads Brewing will not change prices to reflect the tax increase right away. “As a small brewery in Prince George, we have to make a decision if we’re going to absorb that or pass that on to the consumer, we’ve decided to absorb that,” says owner, Bjorn Butow, “as we grow obviously those things start to matter more, and when your volume increases taxation starts to become a bigger hit.” 

So how much will it affect consumers? Experts say the tax won’t be noticeable right away, and the slight increase probably won’t deter Canadians from cracking a cold one.