With a long and reliable history, barley is one of the first commonly produced grains in Canada and is a valuable supplier to the brewing sector. Canuck barley is a national success story, recognized by brewers across the world for its dependably excellent quality.

But with Canada’s already high beer taxes about to rise, we find ourselves in a familiar situation where a business is being squeezed to the breaking point.

There is a strong incentive for the federal government to reevaluate the 4.7 percent increase in the beer excise tax that is scheduled to go into effect on April 1st. These stakeholders include barley farmers, brewers, their staff, hospitality establishments, and millions of beer-loving Canadians.

In the current environment, where costs are rising, including those associated with growing barley and producing beer, the annual beer tax increase runs the risk of making the sector’s current problems worse. This is true even though the policy of tying increases to a complicated inflation-indexing formula may have seemed reasonable during periods of stable inflation.

Read the full commentary HERE by Peter Watts.  

Mr. Watts  is the Managing Director of the Canadian Malting Barley Technical Centre, an independent, national association representing Canada’s full barley value chain.

SOURCE: Troy Media
PHOTO CREDIT: On File