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On Wednesday, September 21st , in the House of Commons, Members of Parliament voted 156-136 to defeat MP Ben Lobb’s Private Member’s Bill C-232.
MP Ben Lobb
“It is disappointing that a bill that would have such a positive impact on small and medium spirit producers in Canada, and also the Canadian agriculture and tourism industry, was voted down by the Liberal Government” said MP Lobb. “I would like to thank my Conservative Party, NDP and Bloc Québécois colleagues for their support of this bill. I also would like to thank all the distillers across Canada, who advocated in favour of this bill and shared their stories with my office”.
Bill C-232 was an effort to reduce the rate of Excise Tax paid by Canadian distillers.
Currently all distilleries, regardless of size or production output are taxed at the same rate of $11.696 per litre of absolute ethyl alcohol. Bill C-232 would have set the Excise Tax rate to $6.00 per litre of absolute alcohol for the first 100,000 litres of production and $11.00 for all production past 100,000 litres.
A reduced Excise Tax rate would have allowed for greater growth and opportunities for reinvestment for overly taxed spirit producers in Canada.
In 2015, only 18 distillers produced more than 100,000 litres of alcohol each for a total production of 99,561,590 litres but, also in 2015, 118 distillers produced less than 100,000 litres of alcohol each for a total production of 599,013 litres.
The Spirits industry contributes $5.8 billion annually to Canada’s GDP and exports $600 million worth of Canadian whisky and other spirits around the world.
In addition, the sector employs nearly 8,500 Canadians full-time.
Canadian distillers purchase approximately 320,000 metric tons of corn annually, making them the 4th largest corn buyer in Ontario and nearly 100% of their grain is sourced from Canadian Farmers
Spirits generate the highest value-add on goods made from Canadian agriculture.
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Thursday, September 22, 2016