Small breweries to be less affected by liquor tax, says Saskatoon brewer

Local brewer weighs in on new liquor tax Moses Woldu speaks to a local brewer on what a new federal tax on beer and spirits means for customers and breweries.

The federal government’s excise tax hike on liquor has taken effect.

Breweries will see a one and a half per cent increase on beer and spirits, which could mean increases as high as 10 cents per litre to production costs.

Chris Beavis, a co-owner and general manager of Winston's pub and 21st Street Brewery in Saskatoon, says smaller breweries won’t be hit like the larger breweries.

“We're a small batch brewery, so we won't be passing along any cost,” Beavis said.

While Beavis isn’t fazed by the recent tax increase, he is cautious that this could lead to more costs down the road.

"I'd like to say any tax increase isn't welcome because it opens the door. If you don’t say it's not welcome, they're just going to do it more and more and more and more.”

The federal government says the alcohol tax will increase each year by the rate of inflation.