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WHITEHORSE – The Yukon Party Official Opposition is calling on the territorial Liberal government to help the Yukon’s tourism and hospitality sector by supporting a Yukon Party request for the federal government to suspend the Alcohol Escalator Tax.
The Yukon’s tourism industry, particularly the hospitality sector, is bracing for an unprecedented hike on the federal tax. Because the tax is tied to inflation, reports suggest the tax could increase by as much as 6.3 per cent in April 2023.
This means bars and restaurants will have to raise their prices to keep up, adding to the inflation challenges of Yukoners. Beer Canada, a beer industry advocate, estimates retail prices will rise between six and nine per cent.
“This has been a tax that the hospitality industry, as well as consumers have been calling for the removal of over the past few years,” said Official Opposition Leader Currie Dixon, who also serves as the critic for the Yukon Liquor Corporation. “With inflation levels not seen in decades, it is imperative the federal government have a second look at this tax and remove it at least for the short term. Businesses in the hospitality sector, as well as Yukoners are grappling with inflation, and this is one more unnecessary pressure.”
The Yukon Party has suggested a number of inflation-easing measures to both the federal and territorial governments. Previously, the Yukon Party has pushed to suspend the territorial fuel tax, called for the doubling of the Pioneer Utility Grant and to nix the insurance tax. An Official Opposition motion passed in the Yukon Legislative Assembly on November 23 calling for the federal government to remove the carbon tax from home heating oil.