Beer Canada urging government cut taxes on beer to support local restaurants

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Published August 12, 2021 at 8:08 pm

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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. 

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