Hon. Robert Black: My question is for the Government Representative in the Senate.

The government’s Budget Implementation Act, 2017 introduced a tax provision on beer, wine and spirits which would result in an automatic increase to excise duties at the rate of inflation every year. When the escalator alcohol tax measure was first proposed, Canadian brewers, wineries and distillers indicated to the government that it was a bad idea to impose a permanent, automatic tax-increase mechanism that would not take into account economic conditions.

They were not alone in calling for its removal; in fact, the Standing Senate Committee on National Finance passed an amendment to the Budget Implementation Act, 2017 to remove that escalator tax. However, it was ultimately unsuccessful in the other place, and this chamber did not insist upon the amendment.

As such, we will see an increase in alcohol taxes of over 6% this coming April.

Canada already has some of the highest taxes in the world: On average, 47% of the price of beer, 65% of the price of wine and 80% of the price of spirits are allocated to taxes. As of 2021, Canadians were already paying about $20 billion per year in alcohol taxes. Any further increase in tax will harm not only our breweries, wineries and distilleries, but also those along the supply chain.

Senator Gold, will the government commit to re-evaluating the alcohol escalator tax to ensure Canadian consumers, alcohol producers and those involved along the supply chain — from agriculture, to manufacturing, to the food services industry — are taxed fairly?