Ontario scraps beer tax increase planned by previous Liberal government

Ontario scraps beer tax increase planned by previous Liberal government

Ontario government scraps beer tax increase planned by Liberals

Beer products are on display at a Toronto beer store on Thursday, April 16, 2015. THE CANADIAN PRESS/Chris Young

TORONTO — The Ontario government is cancelling a scheduled increase in the provincial beer tax that was set to kick in next month – a move that will see the province forgo $11 million in potential revenue.

The Progressive Conservatives said Friday that the three-cent-per-litre increase was planned by the previous Liberal regime and will be scrapped.

Ontario government scraps beer tax increase planned by previous regime

This is just one more tax hike that was due, Finance Minister Vic Fedeli said in an interview. We look at every single opportunity to rein in the taxes. From the largest possible, the cap-and-trade tax, all the way through to the beer tax.

Ontario government scraps beer tax increase set to kick in next month

The government said beer taxes have increased by three cents per litre each year since 2015. Beer and wine taxes brought in revenues of roughly $589 million in 2016-2017.

Beer products are on display at a Toronto beer store on Thursday, April 16, 2015. (Chris Young / THE CANADIAN PRESS)

The halting of this years increase – which was set to take effect Nov. 1 – will mean Ontarios treasury will forgo $11 million in potential revenue that would have come in between November and the end of the fiscal year in March 2019, the government said.

The move comes as the government has said it faces a challenge to deal with the provinces deficit and debt. Fedeli noted that tax increases arent part of the governments strategy.

The government could not immediately say how much tax revenue it will forgo by halting the tax increase.

The government is currently reviewing the provinces approach to beer and wine sales, including the possible expansion of sales into corner and big box stores.

The halting of this year’s increase – which was set to take effect Nov. 1 – will mean Ontario’s treasury will forgo $11 million in potential revenue that would have come in between November and the end of the fiscal year in March 2019, the government said.

Fedeli said the government was still looking at that possible expansion but didnt have a timeline for when a report on the matter would be released.

Its a monumental task, he said. Theres a lot of information gathering … We want to provide more access and we want to do it right.

The policy implemented this summer lowers the minimum price of a bottle or can of beer to $1 from $1.25. Brewers are not required to charge less and the minimum price doesn’t apply to draft beer, nor does it include the bottle deposit.

The policy implemented this summer lowers the minimum price of a bottle or can of beer to $1 from $1.25. Brewers are not required to charge less and the minimum price doesnt apply to draft beer, nor does it include the bottle deposit.

Businesses were offered prime spots in Liquor Control Board of Ontario stores and advertising in the store magazines inserts, among other possible incentives for selling their beer for $1.

TORONTO – The Ontario government is cancelling a scheduled increase in the provincial beer tax that was set to kick in next month – a move that will see the province forgo $11 million in potential revenue.

Two breweries, Cool Brewery in Toronto and Barley Days Brewery in Picton, Ont., have said they will offer lower-priced brews, while Loblaws offered its Presidents Choice beer for one dollar a bottle for a limited time.

The move comes as the government has said it faces a challenge to deal with the province’s deficit and debt. Fedeli noted that tax increases aren’t part of the government’s strategy.

Ontario previously had buck-a-bottle beer but the then-Liberal government quietly hiked the minimum price in 2008, citing its social responsibility mandate.

The Ontario government says it will cancel a scheduled increase in the provincial beer tax that was set to kick in next month.

It says its stopping the increase that was set to go into effect Nov. 1 as it reviews the provinces approach to beer and wine sales, including the possible expansion of sales into corner and big box stores.

The Progressive Conservatives say the three-cent-per-litre increase was planned by the previous Liberal regime and will be scrapped.

TORONTO — The Ontario government says it will cancel a scheduled increase in the provincial beer tax that was set to kick in next month.

It says it's stopping the increase that was set to go into effect Nov. 1 as it reviews the province's approach to beer and wine sales, including the possible expansion of sales into corner and big box stores.

The Progressive Conservatives say the three-cent-per-litre increase was planned by the previous Liberal regime and will be scrapped.

The government could not immediately say how much tax revenue it will forgo by halting the tax increase.

The government could not immediately say how much tax revenue it will forgo by halting the tax increase.

The move to cancel the beer tax increase comes after the government brought back so-called buck-a-beer to the province this summer.

The policy lowers the minimum price of a bottle or can of beer to $1 from $1.25. Brewers are not required to charge less and the minimum price doesn't apply to draft beer, nor does it include the bottle deposit.

Businesses were offered prime spots in Liquor Control Board of Ontario stores and advertising in the store magazine's inserts, among other possible incentives for selling their beer for $1.

Two breweries, Cool Brewery in Toronto and Barley Days Brewery in Picton, Ont., have said they will offer lower-priced brews, while Loblaws offered its President's Choice beer for one dollar a bottle for a limited time.

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Posted in Ontario