The Ontario government is cancelling a planned increase in beer tax that was due to be introduced next month, a move which has been praised by brewers.
A CAD 0.03 ($0.023) per litre tax increase was planned by the Canadian province’s previous government and was due to kick in on 1 November.
The current government said that beer prices have gone up on 1 November for the last three years and that the proposed changes will lock in basic tax rates at their current levels.
Ontario premier Doug Ford said: “This tax hike is a cash grab from the hardworking people of Ontario, pure and simple. We are putting a stop to it so Ontario beer drinkers can keep more of their hard-earned money.”
He added: “Every year, taxes have kept going up to fuel out-of-control government spending while making life more and more unaffordable for Ontario families. We are bringing relief by putting a stop to this tax hike. Our government respects the taxpayer.”
Trade association Beer Canada welcomed the decision. Chair George Croft said: “It’s refreshing to see Doug Ford and his Ontario government take the concerns of beer drinkers seriously. These automatically escalating beer taxes are unfair to consumers, take money out of their pockets and need to be stopped. We applaud the Ford government’s quick action to address this important issue.”
The association said that on average Canadians pay “five times more” in beer tax than their American neighbours and, on average, beer taxes comprise “nearly half” of the price of beer across the country.
The move was also congratulated by Canada’s National Brewers. In a statement, the association said: “We applaud the government’s decision to address this important issue and appreciate the quick action taken on the issue by premier Ford and finance minister Vic Fedeli. This is a huge win for beer consumers in Ontario.”
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