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Ontario alcohol producers are raising a glass to new provincial tax cuts that promise to reduce retail markups for beer, spirits and ready-to-drink beverages.
Changes that came into effect on Aug. 1 lower taxes on spirits and beer produced by local microbreweries by 50 per cent. The measures were initially announced as part of the 2025 provincial budget.
The tax rate on spirits sold in Ontario distilleries has dropped from 61.5 per cent down to 30.75 per cent.
The LCBO confirmed the lower markups. But consumers shouldn't expect instant savings, as the Crown agency's purchases are exempt from basic tax rates applied to spirits.
Savings for beer drinkers
Amendments to the Liquor Tax Act should result in savings for beer drinkers, however.
More than 300 Ontario microbreweries will enjoy tax cuts. The tax on draft beer has been halved from 36 cents to 18 cents...