VANCOUVER, B.C.: The Canadian Taxpayers Federation is applauding the federal government’s decision to cap alcohol tax increases at two per cent this year and next year. 

“Cheers to the fact that the tax won’t be going up as much on April 1,” said Franco Terrazzano, Federal Director for the CTF. “ Canadians have told the government not to raise alcohol taxes and it’s nice to see the government take a small step in that direction.” 

The escalator tax was brought in by Prime Minister Justin Trudeau in 2017. It automatically increases the taxes on alcoholic beverages every year on April 1 without a vote in Parliament. 

Alcohol taxes are already about 50 per cent when charges from all levels of government are included.

The tax on alcoholic beverages was set to go up by almost five per cent. Today’s announcement capped the scheduled increases at two per cent for the next two years. 

“The escalator tax is undemocratic because our members of Parliament should vote before jacking up taxes,” said Carson Binda, B.C. Director for the CTF. “The cap is nice, but the escalator tax needs to be eliminated.” 

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