Mr. Speaker, in response to part (a) of the question, revenues from the federal excise duty on alcohol products are projected to be $2.2 billion in 2024 25.
In response to part (b), in real terms, the government does not anticipate an increase in revenues as a result of the inflation adjustment mechanism. Excise duty rates on alcohol are indexed to the consumer price index to ensure that they maintain their effectiveness, including in meeting their health objectives, and that excise duty revenues generated do not decline over time. On March 9, 2024, the government proposed to cap the inflation adjustment at 2% for beer, spirit and wine excise duties, effective for two years starting on April 1, 2024. This cap on excise duties represents a decline in revenues and is presented in the fiscal framework as a reduction of $63 million in 2024 25 and $353 million over five years.