17 September 2020
Jenica Atwin, MP, Fredericton
House of Commons
Ottawa, Ontario
K1A 0A6
Dear MP Atwin,
Re: Federal Escalator Tax on Alcohol
The Fredericton Chamber of Commerce is writing to express our concerns about the federal government’s unfair alcohol escalator tax.
As you may remember, we discussed this issue when you were first elected. A letter we had written in 2018 to then-MP Matt DeCourcey is reproduced below for your reference. When the measure was first proposed, Canadian brewers, wineries and distillers indicated to the government it was a bad idea to impose an automatic, permanent tax increase mechanism that would not take into account economic conditions. Fast forward to 2020 and it turns out the concerns were well founded.
Placing an escalator tax put on alcohol places an even bigger burden on local restaurants and bars that are already struggling with the impacts of COVID-19 and are doing their best to keep their doors open. The last thing they need is to be forced to raise the prices of their alcoholic beverages, which will hurt their ability to attract customers, retain employees and recover from the pandemic.
We would also like to draw your attention to the fact that increasing alcohol taxes every year drives down investment, growth and jobs for Canada’s domestic alcohol producers, hurting their ability to compete around the world. This was something that was difficult even before COVID-19, are we really going to continue to make these conditions more difficult during a crisis that is already threatening the very existence of these businesses?
We are asking for your support today in ensuring the escalator tax be frozen in the next federal budget, giving all Canadians a much-needed break. As we continue to navigate COVID-19 and the struggles it brings, Canadians and Canadian businesses, including those in the Fredericton area, should not have to continue to pay more and more for their beer, wine and spirits, products we are already taxed on more than almost anywhere else in the world.
Restaurants and bars need our help as we start to recover from the pandemic, not an escalator tax that hinders them even more.
Sincerely,
Krista Ross, CEO, Fredericton Chamber of Commerce
cc: Hon. Chrystia Freeland, Minister of Finance, Government of Canada
cc: Jan H. Westcott, President & CEO, Spirits Canada
cc: Christine Comeau, Executive Director, New Brunswick Craft Alcohol Producers Association
cc: Luc Erjavec, Restaurants Canada, Atlantic Division
cc: Jean Jacques Hermans, Vice President, Corporate Relations, Canadian Chamber of Commerce
cc: Patrick Parent, President & CEO, NB Liquor
