Wine Growers Canada is voicing its satisfaction with the federal government’s decision to add only a two per cent tax cap on wine.
The announcement was made in the recent federal budget. The annual index noted a devastating 6.3 per cent rate increase this year.
Wine Growers Canada noted Canadian wine growers would have been hard-pressed to absorb such a high tax hike when they already face supply chain challenges and skyrocketing input costs.
Wine Growers Canada CEO and president Dan Paszkowski said the organization applauds the government for its commitment to the Canadian wine industry by placing a maximum inflationary cap on the annual indexation of Canada’s excise duty rates on wine.
“But given the economic realities wine growers face, we would call on the government to continue their commitment to the Canadian wine industry by making this maximum inflationary cap a permanent measure,” said Paszkowski in a news release.
“Indexation would have resulted in an increase of some 6.3 per cent this year. A healthy and vibrant wine and grape sector will deliver billions of dollars in economic benefits to local and rural communities in the form of jobs, tax revenue, support for tourism and hospitality and the entire wine and grape value chain.”
Source: SaltWire