Alcohol Prices Set to Rise Across Canada

Alcohol Prices Set to Rise as Canadian Tax Holiday Ends

The cost of many alcoholic beverages in Canada is about to increase as the two-month GST/HST holiday comes to an end on Saturday.

The tax break covered a wide range of alcoholic drinks, including beer, malt beverages, and wines or ciders with an alcohol content of 22.9% or lower. Spirit coolers and premixed drinks containing 7% alcohol by volume or less were also included. However, spirits, liqueurs, and other high-alcohol beverages were excluded from the temporary relief.

In Ontario, the LCBO has alerted consumers that they are in the “final hours” of the tax break, with over 5,000 products set to return to regular pricing.

The federal government introduced the tax holiday to help Canadians manage rising household costs amid inflation. While shoppers benefited from slightly reduced prices, many business owners reported that implementing the change required significant effort for minimal return.

Announced on November 21, the relief period gave retailers less than a month to adjust their pricing and systems before it took effect. Now, as the tax exemption expires, consumers should prepare for higher costs on many alcoholic products across the country.