Department Of Finance Gets It Right

As we questioned the tax and health policies of Canada's regulations on vaping products here, we note the Department of Finance's position on non-alcoholic beer, which has been duty-free from an excise tax perspective since July 2022. This is an example of good tax policy, focussing on promoting the adoption of safer, healthier alternatives by reducing the tax burden on substitutable products. It contrasts to the current approach to vaping products, which involves taxing them at high rates, almost comparable to those applied to smoking products.

Excise Duty on Alcoholic Beer

In Canada, excise duty is imposed under the Excise Act on all beer produced for commercial purposes, with rates dictated by alcohol strength, production volume, and whether the beer is brewed domestically or imported.