45 O’Connor Street, Suite 650 Ottawa, Ontario K1P 1A4 Luke Chapman Interim President 1.613.552.8479
[email protected] BY E-MAIL May 8th, 2020 The Honourable Chrystia Freeland Deputy Prime Minister and Minister of Intergovernmental Affairs House of Commons Ottawa, Ontario K1A 0A6
[email protected] RE: COVID-19’s Impact on Canada’s Beer Sector Deputy Prime Minister: I am writing to you on behalf of Canada’s brewing companies who, like many other businesses, are dealing with a combination of stagnant or declining revenues and rising costs in the face of the COVID-19 pandemic. Canadian brewing facilities produce 85% of the beer sold in Canada. The Conference Board of Canada estimates beer sales support 149,000 jobs, $5.3 billion in wages and $5.7 billion in government tax revenues. In 2019, Canadian brewers paid nearly $700 million in federal excise duty alone. We applaud government’s support efforts to date, notably the Canada Emergency Wage Subsidy and Canada Emergency Business Account, which are providing relief to businesses and easing the economic impact on Canadians. But at the same time, we are hearing from many brewers that more sector-specific interventions are required. The Ontario government’s decision last week to suspend their provincial beer tax increase planned for June 1 will prove to be helpful to brewers. We are asking for your government to follow Ontario’s lead and implement two immediate and one future support measure that will allow brewing companies to survive and recover from this crisis. We are calling on the Government of Canada to immediately: • Defer upcoming monthly excise duty payments until September, and • Roll-back the 1.9% excise duty increase that went into effect on April 1.