Huron Bruce MP Ben Lobb says a lower excise tax for Spirits Distillers would increase production, revenue and jobs.
Lobb says farmers would also benefit from the lower tax.
He says lower taxation could grow Canada's craft distillery industry, which currently includes 8 facilities in Ontario, and 62 nation wide .
Private Members Bill C-232, would lower the excise tax rate for the first 100,000L of 100% alcohol to $6., with the rate for all production beyond that reduced to $11.
Currently , spirits containing more than 7% of absolute ethyl alcohol by volume are subject to an excise duty of $11.696 per litre of absolute ethyl alcohol.
Spirits containing 7% or less of absolute ethyl alcohol by volume are subject to $0.295 per litre of spirits.
Lobb says when the United Kingdom lowered taxes for distilleries by 2%, it added a 96 million pound increase in taxes paid to the UK treasury.
The Bill is being debated in Ottawa today.
-The Spirits industry contributes $5.8 billion annually to Canada`s GDP
-Exports $600 million worth of Canadian whisky and other spirits around the world
-The sector employs nearly 8,500 Canadians full-time
- Canadian distillers purchase approximately 320,000 metric tons of corn annually, making them the 4th largest corn buyer in Ontario
- Nearly 100% of their grain is sourced from Canadian Farmers
- Spirits generate the highest value-add on goods made from Canadian agriculture
