Ontario halts beer and wine tax hikes

The Ontario government says it is once again suspending taxes on beer and wine without allowing them to adjust for inflation.

The tax is not shown on the receipts at the cash register, but it is included in the price of the products that customers see on the store shelves.

The base beer tax and LCBO surcharge rates were set to rise by about 4.6 per cent on March 1, but the province said Friday it would block the increase.

“From curbing growth to the beer tax to reducing the gas tax, we're reducing costs for businesses and families across the province,” Premier Doug Ford said in a statement.

The province has capped growth for the past six years due to inflation. According to his estimates, about 200 million dollars were spent on this move.

The final freeze will remain in place for another two years until March 1, 2026.

The province recently announced that it will extend the sale of alcohol to convenience stores until January 1, 2026. Provincially, beer, wine, cider and ready-to-drink alcoholic beverages are featured in select convenience, grocery and big-box grocery stores across the province. .

“Our government is committed to providing consumers with choice and convenience while ensuring certainty and stability for the alcohol and hospitality sectors,” Finance Minister Peter Bethlenfalvey said in the same statement.

“As we prepare to transition into a new alcohol retail market, this break in the basic beer tax and LCBO surcharges will help make business easier by providing savings to consumers and helping brewers reinvest in themselves and their workers.”

The government said on Friday it plans to carry out a “targeted review” of taxes and duties on beer, wine and spirits over the next few months, in consultation with industry partners. It said the goal would be to “promote a competitive market for Ontario producers and consumers.”