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By Pete McIntyre

unfairly taxed

Okanagan MP looks to scrap tax on low-alcohol beer

Mar 31, 2022 | 2:30 PM

An Okanagan member of parliament is trying to get rid of the federal excise tax on low-alcohol beer.

Richard Cannings, the NDP’s critic for small business and tourism and MP for South Okanagan-West Kootenay, has introduced a bill (C-267) to eliminate that tax.

Cannings said just like the other low-alcohol choices found in grocery stores, low-booze beer is a health-conscious and increasingly popular choice that he feels is unfairly targeted.

“An error was made, and the result is that Canada doesn’t treat all low-alcohol beverages equally. Low alcohol wine and spirits are not subject to the tax while beer with a 0.5 per cent alcohol volume is. My bill aims to fix this and treat all low-alcohol beverages equally,” Cannings explained.

Cannings said in 2020, the federal government collected an estimated $1.1 million in excise tax on low-alcohol beer sales. While that revenue may go to helping Canadians, Cannings argues the government must be consistent and logical across this sector.

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“As someone from what the Lonely Planet has dubbed the ‘Craft Beer Capital of Canada,’ I am encouraged that fixing this error would likely help expand domestic production of low-alcohol beer,” said Cannings. “The removal of the excise tax on low-alcohol beer should be a welcome and easy fix.”

Richard Cannings, NDP MP (Submitted photo/NDP)

The veteran opposition MP’s idea is getting support from beer producers.

“Canada is the only country we’re aware of that currently applies an excise tax on non-alcohol beer,” said Luke Chapman, vice president of Beer Canada, whose members collectively represent 90 per cent of the beer produced in Canada.

“Canadians might not be aware but brewing high quality low and no-alcohol beer is a complex and costly process. Fixing this issue will send a positive signal to the industry and over the long-term has the potential to improve the selection of no and low-alcohol beer options available to consumers.”

Chapman’s group is thanking Cannings and his NDP colleagues for their support of the Canadian beer industry, and the 149,000 Canadians whose jobs are supported by beer.