Canadian Taxpayers Federation calling on Ottawa to cancel the alcohol tax and politician pay hike
The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately cancel the alcohol tax increase and member of Parliament pay raise that are both set to happen on April 1.
“Politicians shouldn’t be taking more money out of Canadians’ pockets and stuffing more money into their own,” said Franco Terrazzano, CTF Federal Director. “Carney needs to immediately cancel his plan to hike alcohol taxes and MP pay.”
The federal government is increasing alcohol taxes by two per cent on April 1. This alcohol tax hike will cost taxpayers about $41 million in 2026-27, according to industry estimates.
First passed in the 2017 federal budget, the alcohol escalator tax automatically increases excise taxes on beer, wine and spirits every year without a vote in Parliament. Since being imposed, the alcohol escalator tax has cost taxpayers about $1.6 billion, according to industry estimates.
MPs also take pay raises each year on April 1. A backbench MP’s salary is currently $209,800. A minister collects $309,700, while the prime minister takes home a $419,600 annual salary.
The federal government stopped the automatic MP pay raise from 2010-2013.
“Carney’s alcohol tax hike will make life more expensive and make it harder for Canadian restaurants, breweries and pubs to survive,” Terrazzano said. “How can MPs take another pay raise off the backs of their struggling constituents and still sleep at night?”