It's not as big as before, but local brewers are still concerned over a beer tax increase coming Saturday.
The federal tax on alcohol is set to go up two per cent on April 1.
Previously, the tax was tied to inflation through legislation passed in 2017, and was set to go up by 6.3 per cent, the largest single increase in over 40 years.
"The news was obviously welcomed," said Jon Laurencic, co-founder/co-owner of Elora Brewing Company in an emailed statement. "(But) Canada and Ontario in particular still pay a hefty amount in taxes.
"There is still lots of work to do, and conversations to be had about making the tax structure for microbreweries more encouraging of growth and investment."
The announcement, part of the proposed federal budget released Tuesday, is a one-time "temporary cap" on excise duty rates on all beer, wine and spirits.
Brad McInerney, marketing director of Wellington Brewery, said for beer lovers, there has never been a better time to support your favourite local craft breweries.
"While we are glad to see the federal excise tax increase is not at 6.3 per cent, there is still a tax increase," he said. "These are challenging times for craft breweries who are being hit with rising raw material and distribution costs along with a difficult retail environment."
Canada's beer tax rates are already the highest among G7 countries.
Beer Canada president C.J. Hélie said in January a 6.3 per cent increase would've been devastating to brewers, brewery workers, the hospitality and tourism sector and more.
He said Beer Canada is appreciative of the move by the government to help these sectors, who are already facing struggles recovering from the pandemic.
Hélie has previously said several years of one to two per cent increases tied to inflation were "manageable," but added "Parliament should have a vote on these things."
