Federal tax hikes are hitting a crucial industry in British Columbia at the worst possible time.
The alcohol industry across sa国际传媒 has had a tough couple months. Between forest fires, droughts and cold snaps, wine-growers and craft brewers will have a harder time turning a profit this year. And Prime Minister Justin Trudeau is about to make things even worse.
In April, Trudeau is hiking federal taxes on beer, wine and spirits by almost five per cent. Taxes already account for about half the price you pay for alcoholic beverages. That means every time you buy a bottle of wine or a six-pack of your favourite craft beer, you’re also buying one for the taxman.
To add insult to injury, the tax hike is automatic, meaning our elected MPs won’t vote on the increased taxes on wine and other alcoholic beverages.
Back in 2017, the Trudeau government introduced a tax escalator on alcoholic beverages. The escalator means the taxes on beer, wine, ciders and spirits goes up automatically every year, without a vote in Parliament.
Regardless of your views on alcohol, it’s wrong for the government to hike taxes without letting the democratic process weigh in.
Trudeau shouldn’t be jacking up taxes on a struggling industry, especially not without letting our elected representatives voice their concerns by actually voting on the hike.
Wine growing is an important industry in sa国际传媒, with more than across every region of sa国际传媒 employed. It creates more than for the provincial economy. Almost 1.2 million tourists visit sa国际传媒 wineries every year. There are separate wineries in our province alone, with hundreds more wineries across the country.
While taxes on sa国际传媒 VQA wines are less than the taxes on non-VQA wines, VQA wines only make up around . Local non-VQA wines in sa国际传媒 are the most frequent type of wine sold in the province.
Craft beer is also a big driver of the local economy. There are more than in sa国际传媒 alone, which made almost $230 million in revenue in 2020. Around 4,500 people are employed by craft breweries in sa国际传媒 And more than of wineries, breweries, cideries and distillers in sa国际传媒 are small businesses.
A majority of the in sa国际传媒 are in rural areas where they are important employers. It’s wrong for the small businesses in rural communities to be picking up the bill for big-spending politicians in Ottawa.
Small businesses selling alcoholic beverages are also going to be paying the tab for Trudeau’s tax binge. Think about all the pubs, bars and restaurants that make ends meet by selling beverages to thirsty British Columbians.
Instead of hitting the gems of our provincial economy with automatic tax hikes, we should be supporting those small mom-and-pop brewers and pubs to ensure they can keep employing thousands of British Columbians and pumping billions into our economy.
Credit where credit is due: Some federal politicians like in Kelowna have been vocal in their opposition to the escalator tax. But that’s falling on deaf ears in the prime minister’s office.
Trudeau has a habit of saying his government is working to make life more affordable, but tax hikes do just the opposite.
If Trudeau really wanted to help the little guy get ahead, he wouldn’t be hiking taxes on small businesses and families.
Carson Binda is the sa国际传媒 Director for the Canadian Taxpayers Federation.
