Alcohol Prices set to rise April 1st.

In just over a month, Ontario’s and the rest of the country’s taxes will increase, driving up the cost of alcohol.

Every year, this excise tax automatically increases in line with the rate of inflation. In 2017, a two percent increase in the federal alcoholic beverage tax was made.

According to the Liquor Control Board of Ontario (LCBO), their prices are determined by a number of variables, including the supplier’s price plus federal import and export tariffs, freight, levies, a typical markup, HST, and container deposits.

The provincial liquor board indicated that producers set retail price hikes. Meaning that the price increases that take effect in Ontario’s liquor outlets on April 1 will differ depending on the specific product.

Canada currently has the highest tax rate in the G7, at 46%, making up nearly half of the retail price of beer. Beer taxes in Japan, which have the second-highest rate, will decrease in October 2023 and 2026. On April 1st, the Canadian government is expected to increase beer taxes by 6.3%.