Alcohol stakeholders say tax increases that came into effect in Alberta on Tuesday are hurting consumers and businesses at a time when consumer spending is under increased pressure.
The increases come from two taxes: a provincial one that will see markups of five-to-15 per cent on what Alberta Gaming Liquor and Cannabis calls high-value wine, and a federal one that puts a two-per-cent increase on all alcohol.
Kelsey Roos, the owner of Color de Vino boutique liquor store, said Tuesday the increases will not only mean their customers will be paying higher prices, it will affect the selection of products her store can offer.
“We have to keep in mind that most consumers are on a budget and they’re struggling day to day,” Roos told CTV News Edmonton.
“Alcohol is obviously something that is not a necessity. It’s something that people like to enjoy with their lifestyles.”
C.J. Helie, president of national brewers advocate Beer Canada, says the two-per-cent federal increase translates into an additional $40 million being paid by consumers.
“We are all stretched way too thin,” Helie told CTV News Edmonton on Tuesday.
“It’s more and more difficult to meet our family budgets, but at the same time, brewers are faced with all these market-based cost increases – barley transport, packaging, new aluminum tariffs, all of those things.”
Helie calls on federal leaders to end and roll back the automatic tax, which has been adding a two-per-cent cost hike to alcohol each year since 2017.
Conservative leader Pierre Poilievre made that commitment Tuesday. Federal NDP and Bloc Quebecois have previously expressed concerns with the automatic increases.
Helie said brewers of all sizes face challenges because of cost increases and uncertain economic times affected by looming U.S. tariffs.
“I think there is a lot of sympathy for the small, independent brewer/operator/owner who has invested, perhaps, their life savings into their business and are really struggling to make ends meet, but if you’re a worker for a large brewer who is facing a layoff because of these cost increases, they are as worthy of that sympathy,” Helie said Tuesday.
With files from CTV News Edmonton’s Amanda Anderson
