Canada: Government scraps excise duties on non-alcoholic beer

Beer Canada welcomes the elimination of all federal alcohol excise duties on non-alcoholic beer announced in the federal Budget on April 7.

Budget 2022 includes an amendment to Canada's Excise Act removing alcohol excise taxes on beer containing no more than 0.5% alcohol by volume. The duty-free treatment for non-alcoholic beer is consistent with how non-alcoholic wines and spirits are already treated in Canada and how Canada's major trading partners treat non-alcoholic beer.

"We are pleased that the Government of Canada has removed this unintended barrier to the development and introduction of quality Canadian non-alcoholic beers," stated CJ Hélie, President of Beer Canada.

Non-alcoholic beer represents a small but growing segment of the global beer market with double-digit annual growth expected as consumers seek greater variety and styles of beer including those containing a broader range of alcohol content.

Low and no alcohol beers are an increasingly popular choice for adult consumers on those occasions when they are looking for the great taste of beer, but without the alcohol.

"The elimination of alcohol excise duties on non-alcoholic beer is a good first step, and we look forward to continuing to work with Minister Freeland to modernize Canada's alcohol excise duty structure and implement further targeted beer tax relief for Canadian consumers, brewers and the broader hospitality sector," added Hélie.

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