Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. To the best of my knowledge, the government does not have any plans to repeal that. As with other taxes and benefits, the alcohol excise duty rate is automatically adjusted each year to account for inflation, as you point out in your question.

Colleagues, this is the right approach. It provides certainty to the sector while ensuring our tax system is fair for all Canadians. I have been advised that the increase is less than one fifth of one penny for a can of beer and, indeed, there are specific measures that take into consideration the needs of craft brewers. Currently, low-alcohol beer — beer with less than 0.5% alcohol by volume — is subject to excise duty, while low-alcohol wine and spirits are not.

I’m further advised the government will eliminate excise duty on low-alcohol beer effective as of July 1, 2022. This will bring the tax treatment of low-alcohol beer into line with the treatment of wine and spirits with the same alcohol content, and make Canada’s practices consistent with those in other G7 countries.

The government recognizes the important contributions that Canadian wine, beer and spirit producers make to the Canadian economy.

Senator Quinn: It’s interesting that the people we have been speaking with from the industry are reporting serious concerns with respect to loss of jobs, not only in their sector but also in sectors that use alcohol products, such as the tourism industry, bars, restaurants et cetera, and that the risk of job losses in the current environment of high interest rates is a real probability. If the government does not introduce a bill to repeal the escalator clause, could you support the Senate introducing a Senate public bill to repeal the excise tax clause and return to the annual raising of excise tax, if needed? After all, millions of Canadians like to enjoy a glass of wine or a cold beer but, as is, this excise tax will be putting it further out of reach for the average Canadian.