Beer Canada calls on feds to axe increasing beer tax as consumption trends down

A trade association for Canada's beer industry wants the federal government to stop its plan to annually increase a tax on the alcoholic drink.

Beer Canada has launched a new campaign calling on Canadians to sign a petition asking Finance Minister Bill Morneau to axe the escalating beer tax.

In last year's federal budget, the Liberal government announced it wanted to annually adjust the beer excise tax by indexing it to the consumer price index with the first inflationary adjustment coming this April.

Beer Canada, which represents 50 brewers who make more than 90 per cent of domestic beer consumed in the country, says 47 per cent of the price of beer in Canada is already tax.

The association says future tax increases would further hurt an industry facing challenging times as beer consumption is declining in Canada.

The Department of Finance Canada did not immediately respond to a request for comment.