Every year on April 1st the Federal ‘escalator tax’ automatically increases taxation on all alcohol indexed to inflation. In April 2023, alcohol taxes are going to increase 6.2%, without any discussion in Parliament. All the Escalator Tax will accomplish is increasing prices for consumers, worsening already sky high inflation, which further justifies higher interest rates. 

 

Add this tax hike to the fact that taxes alone account for around 50% of the price of beer, 65% of the price of wine, and 75% of the price of spirits.

 

The impact of this tax will obviously disrupt brewers and distillers who make these products, but more importantly, it will impact consumers, and disproportionately harm low-income consumers. For those low-income consumers, perpetual tax increases mean each and every year they will have to spend more on these products. For many, this seems like cruel punishment for the crime of wanting to enjoy an alcoholic beverage and socialize, or relax.