Barrie restaurants, bars brace for most significant alcohol tax jump in 40 years
Canada's restaurant industry is bracing for the biggest jump in the country's alcohol excise duty in more than 40 years, spurring warnings the tax hike could force some bars and restaurants out of business.
As of April 1, a 6.3 per cent tax increase on wine, beer and spirits comes into effect.
"I was hoping that the government would take a little pity on us after all we've been through over the last two or three years. We've had supply chain issues, rising costs all the way from beer to liquor, and now we have labour shortages, so it just kind of piles on," said Yvette Wicksted, owner of Bull & Barrel Pub.
Donaleigh's Irish Public House manager Colin Johnson called the situation less than ideal.
"I mean, when you break it down, it's a few pennies per bottle per ounce but any little bit after the last few years that we've had is kind of a hindrance to the ability to do business," he said.
Johnson added that at Donaleigh's, prices would not be raised immediately, but "Prices will eventually have to go up, I mean, you have to, but right away, we're going to sit back and see how everything unfolds, and then we will have to react accordingly."
The tax increase is a big hike for wineries, especially after another recent increase in June.
"It's absolutely huge, and it's coming off some tough years when business hasn't had a chance to recoup. Ontario lost a trade complaint to Australia regarding our wine industry, and all VQA wineries in Ontario are being subject to a new tax on the back end as well," said Walter Vaz, Heritage Estates Winery and Cidery. "So, it's kind of a huge double whammy at a time when we can't afford any increases."
Regional Vice President of Ontario with Restaurants Canada Tracy Macgregor said the increase is a big concern for its operators.
"We're seeing a lot of different compounding costs for our operators, and they're coming frankly out of a period of mounted debt, numerous increases," said Macgregor.
She noted the 6.3 per cent tax increase would cost an average full-service restaurant around $30,000.
Restaurants Canada officials hope the tax hike is deferred or reduced to a lower percentage.
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.