Government extends excise duty relief, provides direct support to Canadian breweries, distilleries and wine makers
The world’s economic and trade landscape is undergoing a rapid transformation, thrusting countries, businesses, and workers into a period of uncertainty. Canada’s new government is responding accordingly, with a focus on what we can control: building a stronger economy at home, protecting Canadian jobs and sectors, and making life more affordable.
In that spirit, the Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence took part in an event at Barnside Brewing in Delta B.C., marking the announcement of a two-year extension of alcohol excise duty relief, to protect brewers, distillers, and winemakers during a period of global uncertainty. By renewing these measures, the federal government is providing relief to Canadian businesses, particularly local craft breweries, that contribute to jobs and local economies.
Effective 1 April 2026, the government’s combined measures are offsetting rising costs for an additional two years in two ways:
- First, the government is capping inflationary increases: The annual inflation adjustment on beer, spirit, and wine excise duties will remain capped at two per cent.
- Second, we are providing targeted relief to craft brewers: The excise duty rate on the first 15,000 hectolitres of beer brewed in Canada will remain cut by half.
Together, these two measures are expected to provide more than $30 million in total relief through to 2028. For a craft brewery, reducing the excise duty rate by half on the first 15,000 hectolitres represents up to about $90,000 in additional tax savings in the 2026-27 fiscal year alone.
As warmer weather approaches and the FIFA World Cup inches nearer to our doorstep, today’s extensions will at once better support our world class brewers, distillers, and wine makers, protect Canadian jobs, help mitigate cost pressures, and ensure Canadians and tourists alike can enjoy the best Canada has to offer with limited tax increases.