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Alberta Government Walks Back Beer Tax Hike Citing Tariffs, Need to Support Business

  • Alberta's government abandoned a new brewery fee schedule introduced in February that would have raised taxes significantly for some brewers, including Big Rock Brewery in Calgary.
  • The fee schedule lowered the production level at which breweries faced increased charges, but due to pressures from U.S. tariffs and the government’s intention to assist smaller breweries' expansion, it was replaced on June 1 with a system featuring more gradual fee increases.
  • The revised fee system now features more gradual increases, aiming to protect small breweries as they expand, with Service Alberta Minister Dale Nally noting that 99 percent of companies would not pay more under the original plan.
  • U.S. Tariffs initially set at 25% on steel and aluminum imports from Canada starting March 12, and subsequently increased to 50% on June 3, along with retaliatory Canadian tariffs, have driven up the prices of vehicles and automotive parts, placing unforeseen financial strain on Alberta’s auto insurers and businesses.
  • These tariff-related cost pressures contributed to policy reversals like the brewery fee change and present challenges such as insurer losses exceeding the current 7.5% rate cap, suggesting further provincial action may be required.
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The Hamilton Spectator broke the news in Hamilton, Canada on Thursday, June 5, 2025.
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