Thank you, Mr. Chair.
I'm here to speak to two measures in Bill C-63, Budget Implementation Act, 2017, No. 2.
The first measure I'll be describing is in part 3 and has to do with the taxing of beer. The measure is dealt with in clauses 165 to 168, which amend the Excise Act so that beer made from beer concentrate for consumption on the premises is taxed in a manner that is consistent with other beer products.
The Government of Canada generally applies an excise duty on such alcohol products as beer, wine, and spirits that enter into the Canadian duty-paid market. The regular excise rate on beer is equivalent to $2.61 per 24 bottles of beer. It has been brought to the attention of the government that as a result of existing excise rules, new ways to sell draft beer may be taxed twice—first as spirits, given their high alcohol content, during the manufacturing process, and secondly as beer, once transformed into a form ready for consumption, at the point of sale.
This measure amends the Excise Act to ensure that beer concentrate is appropriately taxed according to the maximum quantity of beer that can be transformed at the point of sale in a manner approved by the Minister of National Revenue from that concentrate. Beer concentrate will not be taxed as spirits during the manufacturing process.
Public consultations on the measure were conducted in the past couple of months. The proposal appeared in the news release put out by the Minister of Finance on September 8.
I'd be glad to answer any questions you have on part 3 of the bill.