Sherbrooke, Thursday, April 2, 2026 – The Government of Canada has announced a two-year extension of excise duty relief on alcohol in order to support breweries, distilleries and wineries in a context of global economic uncertainty.
This announcement follows ongoing discussions between the Member of Parliament for Compton–Stanstead, Marianne Dandurand, and local microbrewery owners, who have clearly expressed their concerns in recent weeks.
Like many small and medium-sized businesses, these companies are being hit hard by rising costs and economic uncertainty. In this context, excise duty relief has emerged as a top priority for the sector.
By renewing these measures, the federal government is taking concrete action to support local businesses, particularly craft microbreweries, which play a key role in the economic and tourism vitality of our communities.
“Our microbreweries are key players in agri-food processing and serve as essential gathering places in our communities. They create value here, they innovate here, and they bring people together here. In the current context, it was essential to act to give them the breathing room they need to continue growing and to keep showcasing our region.”
As of April 1, 2026, the combined government measures will help limit the impact of rising costs for an additional two years, as follows:
• First, the government is capping inflationary increases: the annual inflation adjustment for excise duties on beer, spirits and wine will remain limited to 2%, providing greater predictability for businesses.
• Second, it is providing targeted support to craft breweries: excise duty rates on the first 15,000 hectoliters of beer brewed in Canada will remain reduced by half, a measure directly requested by the industry. These measures are expected to represent total tax relief of more than $30 million by 2028. For a craft brewery, halving excise duty rates on the first 15,000 hectoliters could generate additional savings of up to approximately $90,000 for the 2026–2027 fiscal year.
Quick facts
• The Canadian Craft Brewers Association estimates there are nearly 1,200 small and independent craft breweries, brewpubs, and their suppliers across Canada, where they support nearly 30,000 jobs and contribute $1.7 billion to the country’s gross domestic product.
• In March 2024, the federal government announced it would, for an additional two years, cap the inflation adjustment at two per cent for beer, spirit, and wine excise duties. In addition, for two years, the government cut by half the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada.
These measures are being extended to protect Canadian brewers, distillers and winemakers today.
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