Finance Minister Chrystia Freeland stated that the federal government will decide to cancel the increase in the beer tax across Canada, which was scheduled to take effect at the beginning of next April.

The tax on alcohol, known as the beer tax, was set to increase by 4.7% at the beginning of April this year, and Freeland mentioned in a statement that this news is good news for Canadians.

It will provide the opportunity to save thousands of dollars as a result of the new tax exemption.

This announcement came after local factories across the country began issuing warnings about the rising production costs.

Freeland added that the federal government will work to reduce the tariff rate.

She pointed out that the measures will continue over two years, starting from the beginning of next April for the current year 2024.