Federal alcohol tax to increase by 6.3 per cent April 1st

FORT ST. JOHN, B.C. — The federal government will increase the tax on beer, wine and spirits by 6.3 per cent on April 1st. 

This is the largest increase in the price of alcohol since the federal government passed the Excise Act in 2017. The Excise Act allows the federal government to increase the tax on alcohol at the business level based on inflation every year.

In 2022, the price of alcohol increased by 2.4 per cent. Once the 6.3 per cent increase takes effect on April 1st, the tax on alcohol in Canada will have increased by 18 per cent since 2017. 

According to the Government of Canada, the amount of taxes paid is based on the percentage of alcohol in the product. Items with higher percentages of alcohol will have higher taxes than those with lower taxes. 

Another major factor in the rising cost of alcohol in Canada is the effort to lower alcohol consumption. 

The Canadian Partnership Against Cancer states that those who drink heavily are at a higher risk for cancer and that raising the price of alcohol has been shown to decrease drinking.