The export of spirits such as whiskey, vodka, rum, gin and tequila is an important source of income for Canada. In comparison to 2016, the past year saw a fall in Canadian spirits exports by a whopping 5.1%. Taking into consideration that spirits account for a larger percent of export than beer, cider and wine combined is cause for concern, especially when we are talking about millions of dollars. <\/p>\n
So what caused the drop in exports, if not the aftermath of an over-indulgent holiday season? Well, back in March 2017, the Canadian Federal Government proposed a budget which saw an increase of between 2 and 7.8% in liquor excise duties. <\/p>\n
Excise duties, also known as sin tax, are charged immediately after manufacturing, rather than following the sale of a good. They are commonly charged on goods and services deemed undesirable or harmful to society. For example, alcohol, tobacco, and gasoline are just a few common goods that are subject to excise duties. <\/p>\n
Being that manufacturers and brand owners have to pay excise duties before receiving any source of profit from their good, a hike in percentages is likely to discourage production. And as we\u2019ve seen with the 5.1% decrease in exports, the proof is there. <\/p>\n
At the same time as the Canadian government proposed an increase in sin tax, the United States decided to cut their spirits excise duties, posing some serious competition up North.<\/p>\n","protected":false},"excerpt":{"rendered":"
The export of spirits such as whiskey, vodka, rum, gin and tequila is an important source of income for Canada. In comparison to 2016, the past year saw a fall in Canadian spirits exports by a whopping 5.1%. Taking into consideration that spirits account for a larger percent of export than beer, cider and wine […]<\/p>\n","protected":false},"author":13,"featured_media":4191,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4189"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=4189"}],"version-history":[{"count":4,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4189\/revisions"}],"predecessor-version":[{"id":4194,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4189\/revisions\/4194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/4191"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=4189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=4189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=4189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}