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OTTAWA — A two per cent increase in the federal excise tax on alcohol is set to take effect April 1, 2026, adding an estimated $41 million in additional revenue to federal coffers, according to the Canadian Taxpayers Federation.
The annual adjustment, tied to inflation, will raise the cost of beer, wine and spirits by a small amount per serving, typically a few cents per drink or several dollars per case, depending on the product and how producers pass along the increase.
The tax is part of an automatic escalator introduced in 2017, which increases alcohol excise duties each year without a parliamentary vote. The federal government has capped recent increases at two per cent despite higher inflation in previous years.
Industry groups and labour organizations have raised concerns the continued increases could add pressure on consumers and businesses, particularly as input costs remain elevated and sales in some segments are flat or declining
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