Ottawa Brewery Shuts Down Amid Rising Alcohol Taxes

0:00An Ottawa craft brewery is calling it quits, and rising alcohol taxes are a big part of the pain. Kitchissippi brewery owner Paul Meek says he's shutting down operations right before the federal government's next excise tax hike hits on April 1st. He points out that while taxes aren't the only issue, they're squeezing thin margins in an industry already fighting to stay afloat. This automatic escalator tax on beer, wine, and spirits started back in 2017 and adjusts yearly with inflation. Last year, high inflation pushed for a 6% jump, but industry pushback capped it at 2%. Now that same 2% increase kicks in this week, and Meek wants his scrapped entirely, calling it an unasked for cash grab by Ottawa. Local brewers and owners like Meek feel the heat from these steady hikes, saying Canada's tax setup lags behind the rest of the world and hits. Quality focus spots hard. The Canadian Taxpayers Federation agrees, warning it'll jack up prices for consumers and threatened restaurants, pubs, and more breweries nationwide.

1:03Meanwhile, the Canadian Craft for Brewer's Association is pushing for bigger relief. They got a break last year on the first 15,000 hecto litres. For small ops, but now want that bump to 500,000 to help growing players too. They argue the current rules stifle expansion in a super regulated field. These taxes add up like death by a thousand cuts, piling pressure on businesses chasing local flavor over big profits, and leaving everyone wondering, if more closures are on the horizon. You've been listening to Canada News today, AI-powered local news.