OTTAWA, ON: The Canadian Taxpayers Federation is calling on all party leaders to commit to ending the escalator tax that increases federal taxes on alcohol every year on April 1 without a vote in Parliament.

“In one week, the federal government will hike alcohol taxes again this year,” said Franco Terrazzano, CTF Federal Director. “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.”

Federal alcohol taxes will increase two per cent on April 1. This alcohol tax hike will cost taxpayers about $40 million in 2025-26, according to Beer Canada estimates.

The alcohol escalator tax has automatically increased excise taxes on beer, wine and spirits every year, without a vote in Parliament, since 2017. The alcohol escalator tax has cost taxpayers more than $900 million since being imposed, according to Beer Canada estimates.

Taxes from multiple levels of government account for about half of the price of alcohol.

Meanwhile, tariffs are hitting the industry hard. Brewers have described the tariffs as “Armageddon for craft brewing.”

“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” said Carson Binda, CTF B.C. Director. “All federal party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol escalator tax.”