MANITOULIN—Manitoulin Island’s two craft breweries are in favour of the position of the Ontario Craft Brewers Association (OCBA) ‘Keep Craft Beer Local’ campaign that stresses that taxes the craft brewers pay is not fair in comparison to the larger brewers like Molson’s or Labatts, or even with other provinces in the country. They say that without a fairer alcohol tax system it could eventually mean some breweries closing. “Absolutely, we are in favour of the OCBA campaign,” stated Blair Hagman of Manitoulin Brewing Company based out of Little Current. “Beer taxes are not fair for local craft brewers compared to the bigger companies.”
Andrea Smith of Split Rail Brewing in Gore Bay said, “Split Rail supports the OCBA Keep Craft Beer Local campaign and the call for a fairer tax system in the craft beer industry.”
“The comments the OCBA is emphasizing is essentially that Ontario beer taxes are much higher than the rest of the country. The campaign is bringing about an awareness of the inequities of the tax system for beer,” said Ms. Smith.
Scott Simmons, president of OCBA has been quoted in numerous publications as saying that if the current tax structure remains in place for too much longer, there will be fewer local breweries to take advantage of the new marketplace.
On the OCBA website it outlines the campaign for supporters of craft breweries to send a letter to their area provincial MPP, asking for their help to keep craft beer local. It states in part, “We need to make sure they can continue to be successful because they are a huge part of my community. Right now, Ontario craft brewers pay higher taxes than craft brewers in any other province. That’s almost $7 more in taxes and almost eight times higher than Alberta breweries per case. That needs to change. Manitoba just lowered taxes for craft breweries and Ontario should do the same.”
“Please support (the campaign) by making beer taxes fair. We need to make sure they can keep brewing outstanding beer, creating good local jobs and supporting my community.” The letter, which can be signed by anyone who is in support of craft beer local on the OCBA website, will be sent to the Honourable Peter Bethlenfalvy. The access to the campaign and its letter can be found at www.keepcraftbeerlocal.ca/action.
