11.04°C Vancouver

Mar 31, 2026 3:55 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press

Ottawa to extend 2% cap on alcohol excise tax increases through 2028

Share On
ottawa-to-extend-2-cap-on-alcohol-excise-tax-increases-through-2028
The government is also planning to extend for two years a separate measure supporting small-scale brewers, which reduces excise taxes by 50 per cent on the first 15,000 hectolitres of beer produced in Canada. (Photo: The Canadian Press)

The federal government is set to extend its temporary cap on annual alcohol excise tax increases for another two years, according to a senior government official who spoke to The Canadian Press on background ahead of a formal announcement.

Excise duties on beer, wine and spirits are normally adjusted each April 1 based on inflation. Since 2023, the Liberal government has limited those increases to a maximum of two per cent annually. That cap was scheduled to expire this year, but the official said it will now remain in place until 2028.

The government is also planning to extend for two years a separate measure supporting small-scale brewers, which reduces excise taxes by 50 per cent on the first 15,000 hectolitres of beer produced in Canada.

According to the official, the extensions are intended to provide cost predictability for brewers, wineries and distilleries facing ongoing global trade pressures and supply chain challenges. The timing also coincides with expectations of increased demand tied to major events, including matches hosted in Canada during the upcoming FIFA World Cup.

The proposed extension comes as opposition parties and advocacy groups continue to push for the complete elimination of scheduled alcohol tax increases. The federal Conservative party and the Canadian Taxpayers Federation have both called on the government to cancel the April 1 adjustment entirely.

Latest news

carney-signals-controlled-increase-in-immigration
CanadaSep 29, 2026

Carney Signals Controlled Increase in Immigration

Prime Minister Mark Carney has signalled that Canada could begin a controlled increase in immigration after bringing the country’s immigration system back under control. In another part of an interview with a private broadcaster, Carney said the immigration system is now under control and that the next question is how to begin a controlled increase in the country’s population. His comments come exactly one month before the government is expected to announce its immigration targets for the next three years. The previous three federal immigration plans focused on reducing the number of newco
calgary-chamber-warns-of-economic-fallout-from-alberta-split
AlbertaSep 29, 2026

Calgary Chamber Warns of Economic Fallout From Alberta Split

A report commissioned by the Calgary Chamber of Commerce warns of significant economic consequences if Alberta were to separate from Canada. The study, led by University of Calgary economist Trevor Tombe, estimates that trade costs could increase by 5% to 8%, potentially resulting in 44,000 to 69,000 fewer jobs in Calgary compared with remaining in Canada. The report notes that Alberta is Canada’s most trade-exposed jurisdiction, making the province particularly vulnerable to higher trade costs. The report comes three weeks before Albertans vote on 10 referendum questions, including one on
CanadaSep 29, 2026

RCMP Charges 16 in Major Quebec Cocaine Trafficking Investigation

The RCMP in Quebec has charged 16 people following an investigation into a major cocaine trafficking network allegedly operating in the province. Police said the operation, known as Project Chrome, began in 2022 with significant assistance from the Canada Revenue Agency. Investigators allege the organization operated an illegal gaming house in Montreal and used proceeds from drug trafficking to renovate properties linked to the group and launder money. During searches, police seized 14 kilograms of cocaine, more than $145,000 in cash and assets valued at over $9 million. According to details r
BCSep 29, 2026

Langley Shooting Leaves One Person Injured, Police Investigating

Langley RCMP are investigating a shooting in which one person was injured in the Brookswood area. Police said the incident occurred early Monday morning in the 3000-block of 205 Street. Langley RCMP officers and BC Emergency Health Services personnel responded shortly after receiving reports of gunfire and transported the injured person to hospital. According to Sgt. Zanel Sharoum, investigators believe the shooting was a targeted incident based on preliminary findings. Police are speaking with witnesses and reviewing CCTV footage as part of the investigation. The victim's identity has not bee
b-c-conservatives-accuse-eby-of-breaking-1-000-grocery-rebate-promise
BCSep 29, 2026

B.C. Conservatives Accuse Eby of Breaking $1,000 Grocery Rebate Promise

The B.C. Conservatives have launched an attack on the B.C. NDP and Leader David Eby during the provincial election campaign, accusing them of breaking election promises and pursuing failed economic policies. The Conservatives claim that exactly two years ago, the B.C. NDP promised to provide every family in British Columbia with a $1,000 grocery rebate but abandoned the commitment after winning the election. B.C. Conservative Leader Lorne Doerkson questioned how voters could trust the NDP after the alleged broken promise, arguing that the province needs a change in government. Doerkson also cr

Related News