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
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.