With all the USA shelf space available at liquor boards in all provinces across Canada it’s time for all retailers to list more wines from NS Tidal Bay, Vin Quebec, VQA Ontario and BCVQA. It’s a welcome lift for an industry that has faced numerous setbacks, threatening the survival of wineries both big and small.

Momentum like this has the potential to change the trajectory of the industry’s future, but only if our domestic policy environment fosters rather than stifles—growth.

On April 1st, Canada’s legislated annual inflation of excise taxes on alcohol-wine, beer and spirits will kick in. Since its introduction in 2017, the excise tax escalator—automatically raising taxes each year based on inflation—has quietly compounded the burden on consumers and businesses. With inflation continuing to surge and the threat of additional economic shocks like tariffs on the horizon, this tax policy is no longer tenable.

The automatic increases, tied directly to inflation, fail to account for the complexities of today’s economic reality. Rather than offering flexibility to adjust in response to external shocks, the current system ensures that excise taxes rise on autopilot, without any parliamentary oversight or debate.

This rigid, automatic approach not only impacts consumers but also undermines the democratic process. Taxes on alcohol are not a small matter. They affect the hospitality, agriculture, and retail sectors—industries that are central to the livelihood of many Canadians. These sectors are already fighting tooth and nail against rising food costs, increasing energy bills, and growing transportation expenses. Yet, come April 1st, businesses will face an additional 2% increase in excise taxes—further squeezing their margins and slowing down their potential for recovery.

It is critical to understand that such tax hikes shouldn’t be imposed without thoughtful consideration. The decision to raise taxes, especially in such a volatile economic climate, should be part of the annual budget process. By returning this decision to the floor of Parliament, we ensure that elected officials can properly debate and vote on these increases, considering the voices and concerns of those most affected—business owners, workers, and communities.

This approach not only promotes greater transparency but also ensures that tax policies are revisited with every new economic development. The automatic, legislated tax increases put in place by Budget 2017 have removed the opportunity for such debates and input. It’s time to revisit this policy and restore the checks and balances that are crucial for a healthy, functioning democracy.

As the political climate heats up, the question arises: Will leaders like Prime Minister Mark Carney and Conservative leader Pierre Poilievre stand up for Canadians and commit to repealing the excise escalator tax? More importantly, will they push for a return to a tax system that requires democratic debate and oversight before taxes on alcohol—an essential part of Canada’s economy—are raised?

In times of economic difficulty, it’s more important than ever to ensure that policies are designed to support businesses and workers, rather than hinder them. As we consider the impact of rising excise taxes, let’s rethink how we approach tax policy in Canada—prioritizing flexibility, transparency, and accountability. If we are serious about promoting economic growth and recovery, this is one policy that must be reevaluated and, ideally, repealed.

It is incumbent on elected representatives to debate the future of excise taxes in Canada. The impact on local businesses, workers, and the broader economy cannot be ignored.

The decisions of 2017 do not reflect the realities of 2025.

Dan Paszkowski, President and CEO, Wine Growers Canada