The Canadian Craft Brewers Association and the Coalition of Canadian Independent Craft Brewers welccoming the news that craft breweries will receive a significant excise tax reduction on their first 15,000 hectolitres of production.
See: Alcohol excise tax capped at 2 per cent for two more years, Freeland announces
This change acknowledges the urgency to support Canada’s smaller breweries, which represent over 20,000 industry jobs, according to a recent Economic Impact Study conducted by MNP. Independent craft breweries produce 17 per cent of Canada’s beer, yet create over 60 per cent of the jobs. Recent data from Innovation Science and Economic Development Canada confirmed that in 2022, 63 per cent of the close to 900 breweries in Canada producing less than 15,000 hectoliters of beer were not yet profitable.
A significant barrier to profitability is the amount of provincial and federal markups and taxes small Canadian brewers pay.
“The recent announcement demonstrates the Federal Government’s awareness of the critical importance of lessening the tax burden placed on Canada’s locally owned and operated craft breweries,” says CCBA Executive Director Christine Comeau. “Although this does not address the independent brewers producing more than 15,000 hectolitres, this is a welcomed and important first step.”
"We applaud the Federal Government’s recent announcement, but recognize there is still more work to be done to modernize the excise tax schedule to support the larger independent craft brewers,” continues Brad Goddard, Chair of the Coalition of Canadian Independent Craft Brewers. “More than 60 per cent of the country’s craft beer production comes from breweries over 15,000 hectolitres and with further excise tax reductions for these independent breweries they will also be able to significantly contribute to an increase in jobs, beer production, and tourism across Canada.”
