There’s growing concern about a federal excise tax that will greatly impact Canada’s craft distilleries.

A campaign, called “Lift Canada’s Spirits,” is a coalition of small to large distilleries whose goal is to reduce the excise tax on the first small annual volume of spirits produced to be more in line with domestic, craft beer production.

Spokesperson for the campaign, Tyler Dyck, who is also president of the Craft Distillers Guild of B.C. and CEO of Okanagan Spirits Craft Distilleries, recently joined Shaun Haney on RealAg Radio, to give an introduction to the issue, and the result the coalition hopes for.

“Basically it comes down to asking the Canadian government to help realize parity or fairness across the border with our biggest trading partner, who has implemented a really forward thinking and progressive plan to help domestic agriculture in their own country, by decreasing the excise tax that distillers pay, on the first small amount of production of every year,” says Dyck.

The U.S. wanted to bolster their producers and encourage growth in the sector — knowing that domestic producers use almost 100 per cent local crops to make their product — their excise rate was axed to 1/7th what the Canadian rate is, says Dyck.

Dyck says that in a post-pandemic era, reducing the excise tax is a sure-fire way to stimulate true made-in-Canada, value-added production.

The other big point is that if the U.S., or other large trading partners, have something in place where they can produce, and their excise tax is far smaller than Canada’s, it allows the competitor to scale-up and get their average cost of production down, being able to aggressively attack the market, outcompeting Canada in its own market.

Craft distillers currently pay $3.81 per 750ml, while craft beer makers pay $0.02 per 750ml, says the coalition. Canadian small brewers have a tiered excise tax structure that small distillers are seeking. There are approximately 225 craft distilleries in Canada.

Hear the full conversation below:

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preference Center

Necessary

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag
__cfduid

Marketing

Measuring interactions with the ads on the domain.

__gads,fsk_ut_2317
IDE

Statistics

These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.

_ga,_gid,_gat,_cb,_chartbeat2,_chartbeat4
_ga,_gid
metrics_token

Preferences

Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp