Beer Canada urging government cut taxes on beer to support local restaurants
Published August 12, 2021 at 8:08 pm
Beer Canada is urging the House of Commons Standing Committee on Finance to support measures that would help local restaurants save money as part of their 2022 Pre-Budget consultations.
As part of these measures, Beer Canada is proposing a 50 per cent tax cut on draft beer sold to licensed bars and restaurants.
“A 50 per cent tax cut would provide a critical economic lifeline to neighbourhood restaurants and bars struggling to emerge from the COVID-19 pandemic,” CJ Hélie, president of Beer Canada, said in a news release.
While a 50 per cent tax cut would reduce federal excise duties on draught beer sold to licensed bars and restaurants by more than $35 million dollars annually, the additional GST revenue from pints of beers sold on these premises would result in a net gain for the federal government in terms of overall direct tax revenues.
Additionally, Beer Canada is seeking support from MPs on a proposal that would increase permissible income tax deductions from 50 per cent to 100 per cent for meals purchased from restaurants for the next three years.
This would align with a similar proposal the IRS made in the U.S. to help support American restaurants.Insauga's Editorial Standards and Policies