Ontario government scraps beer tax increase set to kick in next month

TORONTO – The Ontario government says it will cancel a scheduled increase in the provincial beer tax that was set to kick in next month.

The Progressive Conservatives say the three-cent-per-litre increase was planned by the previous Liberal regime and will be scrapped.

READ MORE: Buck-a-beer comes into effect in Ontario, but beer and wine in corner stores still a while away

The government says beer taxes have increased by three cents per litre each year since 2015.

It says it’s stopping the increase that was set to go into effect Nov. 1 as it reviews the province’s approach to beer and wine sales, including the possible expansion of sales into corner and big box stores.

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The government could not immediately say how much tax revenue it will forgo by halting the tax increase.

Beer and wine taxes brought in revenues of roughly $589 million in 2016-2017.

© 2018 The Canadian Press

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