Excise tax tied to inflation should be axed for good, say B.C. brewers, wine producers

Producers of wines, beers and spirits in B.C. say while they welcome the federal government’s decision to cap alcohol excise tax increase at two per cent for the new fiscal year, they would rather have it removed.

In the federal budget released Tuesday, Ottawa temporarily capped “inflation adjustment for excise duties on all alcoholic products at two per cent” for a year, starting April 1.

In 2017, Ottawa decided to tie excise tax on alcoholic beverages to inflation — called “escalator tax” — to make tax hikes more predictable. But high inflation over the last year pushed the excise tax increase to 6.3 per cent, the highest increase in history.

Tyler Dyck, president of the Craft Distillers Guild of

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