Department of Finance Canada announced proposed alcohol excise duty relief for Canadian breweries, distilleries, and wine makers.
The proposal would cap the inflation adjustment at two per cent for beer, spirits, and wine excise duties for two additional years.
Finance Canada also proposed to cut by half the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada for two years.
The department said the beer measure would provide a typical craft brewery with up to $86,952 in additional tax relief in 2024-25.
The federal government also extended the Wine Sector Support Program with an additional $177 million over three years, starting in 2024-25.
Finance Canada cited Conference Board of Canada figures saying the beer industry supported 149,000 Canadian jobs, paid $5.3 billion in wages, and contributed $13.6 billion to Canada's GDP in 2016.
For alcohol producers, the measures affect excise-duty costs, cash flow, pricing room, and compliance planning during the affected fiscal years.