Only a few weeks ago, Prime Minister Trudeau was asked whether Canadians can expect tax increases to help pay for the significant increases in government spending that have occurred in response to the COVID-19 pandemic. His response came as a relief to Canadians and businesses when he said, “No. The last thing Canadians need to see is a raise in taxes right now.”
Notwithstanding the Prime Minister’s statement, Canadians and struggling restaurant and hospitality businesses ARE scheduled to be hit with an increase in taxes on beer, wine and spirits next April 1. However, they are not just facing this increase next year, they face an increase in alcohol taxes on April 1of every year because of the alcohol escalator tax.