The federal government has decided to cap alcohol tax increases at two per cent this year and next year. Prior to this decision, the tax on alcoholic beverages was set to go up by almost five per cent.

Canadian Taxpayers Federation Federal Director, Franco Terrazzano, says “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, which automatically increases the taxes on alcoholic beverages every year on April 1 without a vote in Parliament, was brought in by Prime Minister Justin Trudeau in 2017.