Canada’s federal alcohol tax increase, effective on 01 April 2023, will reportedly increase by 6.3%, the largest increase for the alcohol sector in 40 years. An amendment to Canada’s Excise Act made in 2017 allows the government to raise taxes on alcohol beverages in response to inflation. The Canadian alcohol beverage sector is working diligently to get a reprieve in the upcoming federal Canadian Budget. These increases are linked to unprecedented high inflation rates that were never anticipated when the indexation was introduced in 2017.

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