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Hamilton Spectator

Liquor tax rates were slashed this week. Here's how your receipt could change

Amid declining U.S.-Canada tariff negotiations , buying local liquor and beer is becoming easier in Ontario. Tax on spirits sold across the province were slashed in half effective Thursday. Here's how this change could affect your bill. Amendments from Bill 24 presented in May took effect this week, cutting provincial tax on a variety of goods, including changes to the spirits basic tax rates . The tax on spirits has been reduced from 61.5 per cent of the retail price to 30.75 per cent. This applies specifically to spirits distilled in Ontario and sold through on-site distillery retail stores. If you shop at the LCBO, don't expect savings, as the Crown agency's purchases are totally exempt from the spirits basic tax rates. Beer lovers will see a price drop, though, as amendments to the Liquor Tax Act will see rates reduced from 35.96 cents per litre to 17.98 cents per litre for draft beer and from 39.75 cents per litre to 19.88 cents per litre for non-draft beer. That amendment will impact the price of beer made in Ontario by microbrewers, and will hit price tags in LCBO stores, as they have been directed to reflect the reduced rate in their mark-up's. According to the Canadian Partnership Against Cancer, alcohol taxation is the most cost-effective method of limiting alcohol consumption. 'Taxation and minimum pricing policies are especially effective when they are tied to the alcohol content in the beverage. This means that as the alcohol content of the beverage increases, the price gets higher,' their website reads . Bill 24 also amended the Fuel Tax Act, changing the definition of 'fuel' to exempt propane from such taxes.