TORONTO, August 11, 2021 / CNW / – Beer Canada is seeking support from the House of Commons Standing Finance Committee for targeted support efforts to rescue local restaurants in the neighborhood as part of their 2022 budget consultations.
Beer Canada calls for a 50% cut in draft beer excise taxes to save neighborhood restaurants
“A 50% tax cut on draft beer sold to licensed bars and restaurants would be an important economic lifeline for neighborhood restaurants and bars struggling to get out of the COVID pandemic,” said CJ Hélie, president by Beer Canada.
In addition to lowering federal excise taxes on draft beer, Beer Canada is also soliciting MPs support for increasing the allowable income tax deductions for meals purchased in restaurants over the next three years from 50% to 100% in order to help American restaurants by the IRS.
The Canadian restaurant sector can take years to fully recover from the pandemic and continued targeted support efforts at all levels of government are essential to avoid permanent business closures and job losses.
A 50% cut in excise duties would more than lower federal excise taxes on draft beer sold to licensed bars and restaurants $ 35 million annually, with these reductions being more than offset by additional GST revenue for pints of draft beer consumed in these licensed premises. This makes the measure a net gain for the federal government in terms of total direct tax revenue.
In addition, Beer Canada’s pre-budget recommendations include abolishing the alcohol excise tax on non-alcoholic beer, as well as freezing the planned one April 2022 automatic increase in alcohol tax.
Canada is one of the few countries in the world that levies alcohol excise taxes on non-alcoholic beer. Non-alcoholic wines and spirits in Canada already benefit from an excise duty exemption.
- 85% of the beer consumed in Canada is done here.
- About 149,000 Canadian jobs are supported by the manufacture and sale of beer.
- Over 19,000 Canadians work in breweries across the country.
- Canada is home to over 1,200 breweries.
- Beer contributes to this $ 13.6 billion to Canada GDP annually.
ABOUT BEER CANADA
beer Canada is the voice of the people who make our nation’s beers. Our members make up 90% of the beer that is made in Canada. The sale of beer supports 149,000 Canadian jobs, generated $ 14 billion in gross domestic product and $ 5.7 billion in the tax revenue of the state.
beer Canada has represented Canadian brewers since 1943 and provides the most comprehensive and up-to-date statistical overview of monthly and yearly trends in the beer industry.
SOURCE Beer Canada
To download multimedia, see the original content at: http://www.newswire.ca/en/releases/archive/August2021/11/c9087.html