Ontario Freezes Beer Tax and Mark-Up Rates

“Our government is building on its commitment to offer choice and convenience to consumers while providing certainty and stability for the alcohol and hospitality sectors,” said Peter Bethlenfalvy, Minister of Finance. “As we prepare to transition to a new alcohol retail marketplace, this pause on beer basic tax and LCBO mark-up rates will help make it easier for businesses by providing savings for consumers and helping brewers to reinvest in themselves and their workers.” Ontario Government 

Key Facts:

• Ontario government freezes planned increase in beer tax and LCBO mark-up rates.
• Freeze is in place for two years, until March 1, 2026.
• Estimated savings for consumers: $200 million over six years.
• Action aims to make life more affordable for families and support businesses.
• The decision coincides with plans to expand alcohol sales to select non-LCBO retailers.
• The government aims to provide certainty and stability for the alcohol and hospitality sectors.
• Further consultations are planned with industry partners and stakeholders.
• Targeted review of alcohol taxes and fees planned to enhance market competitiveness.

Benefits:

• Lower beer costs for consumers.
• More affordable alcohol options.
• Relief for businesses, potentially leading to reinvestment.
• Stable environment for transition to new alcohol retail marketplace.
• Potential boost for Ontario-based producers.
• Freeze builds on previous government efforts to keep beer tax stable.
• Expansion of alcohol sales aligns with consumer choice and convenience goals.
• Targeted review highlights commitment to a competitive marketplace.