AHA Responds to the Federal Alcohol Excise Tax

The Alberta Hospitality Association has been calling on the Federal Government to halt its proposed 4.7% increase in the Federal Alcohol Excise Tax, scheduled for April 2024. This tax hike is unwarranted and threatens to impose further strain on an industry that is already grappling with soaring costs across the board - from supply chains and labor shortages to existing tax burdens.

The Federal Government instead proposed the implementation of a 2% increase in excise taxes for 2024 and 2025.  While this provides some stability, this decision is a clear political maneuver to ease growing anger over the cost of living and cost of operating businesses in this country, does not go far enough. The Alberta Hospitality Association reiterates that this tax increase must be abandoned if businesses are to survive. 

Implementing an increase in the Alcohol Excise Tax at a time when the industry and the broader society are navigating significant economic challenges is not only misguided but demonstrates a concerning disregard for the plight of a wide range of stakeholders. This includes everyone from grain farmers and brewers to bars and restaurant owners, as well as end consumers, all of whom are already facing considerable financial stress.

Jeff Jamieson, a board member of the Alberta Hospitality Association, has voiced the collective frustration, criticizing the planned tax increase as “irresponsible and seemingly malicious.” His comments reflect a broader sentiment within the industry, emphasizing how disconnected such fiscal policies are from the everyday realities of Canadian citizens and business owners.

Our goal is to secure a stable and flourishing environment for the restaurant sector in Alberta, and we believe that stopping the proposed tax hike is a critical step toward achieving this aim. It is crucial for the Federal Government to reconsider its approach and support the hospitality industry’s recovery and growth, rather than introducing new obstacles.

About Alberta Hospitality Association:

The Alberta Hospitality Association (AHA) was founded in 2020, with the goal of providing a unified voice for the hospitality industry, from both the perspective of the operator and the employee.

To date, AHA is still run by owners and operators who understand the current challenges within the industry. As an organization, it strives to provide insights, connections, and resources to support the success of its members and the industry as a whole.

www.albertahospitalityassociation.ca