Budget includes pocketbook promises on low-alcohol beer, vaping and menstrual products
The federal budget contains several pocketbook initiatives including eliminating the 'sin' tax on low-alcohol beer, slapping one on vaping products, and making menstrual products more readily available for Canadians in need.
LOW-ALCOHOL BEER
As excise tax duties rose recently for alcohol products in Canada, the new budget proposes to get rid of this tax for low-alcohol beer – which is beer with no more than 0.5 per cent alcohol by volume.
At the moment, low-alcohol beer is subject to excise duty rates, while its low-alcohol wine and spirit counterparts are exempt.
“This will bring the tax treatment of low-alcohol beer into line with the treatment of wine and spirits with the same alcohol content, and make Canada’s practices consistent with those in other G7 countries,” according to the federal budget document.
The announcement comes a week after the Conservatives and NDP advanced private members’ bills targeting the rising cost of beverages. Since 2017, excise duty taxes on beer, wine, spirits and other alcoholic beverages have increased automatically every year on April 1.
MENSTRUAL PRODUCTS
A Plan International Canada survey found that over one-third of women and girls in Canada had to make budgetary sacrifices—either often or occasionally—in order to afford menstrual products.
In Budget 2022, the federal government outlined its plan to give $25 million for Women and Gender Equality Canada—a government department previously known as Status of Women Canada—to start a pilot project aimed at making menstrual products available to Canadians in need.
“Access to menstrual products is a basic necessity, but current barriers make it difficult for some women, girls, trans, and non-binary Canadians to fully participate in school, work, and society,” the budget document reads.
The budget document estimates this program would cost a total of $25 million, with $6 million being spent in 2022-2023, and $19 million in 2023-2024.
Federal labour officials have heard repeatedly about lack of menstrual products in workplaces, with stakeholders telling the government about hygiene and health issues if workers turn to “unsuitable improvised solutions” or if they were to “extend the use of products beyond their recommended time frame,” according to a briefing note by stakeholders sent to then-Labour Minister Filomena Tassi last year.
Tassi acknowledged then that menstrual products are “a basic need for many Canadians, however they are often not treated as such." She added menstruation is “a fact of life, and part of supporting the health and safety of employees."
VAPING PRODUCTS
The last budget announced the government’s intention to tax vaping products in an effort to curb the health risks they pose, especially to young people.
Budget 2022 says this excise duty—also known as a sin tax that’s charged on goods like tobacco and alcohol products—will come into effect on Oct. 1 of this year. The tax would amount to $1 for every 2 mL (or fraction thereof) for containers with less than 10 mL of vaping liquid. For containers with more than 10 mL, the rate would be $5 for the first 10 mL and $1 for every additional 10mL (or fraction thereof).
So a 30 ml bottle of vaping liquid would be hit with an excise duty of $7.00 ($5.00 for the first 10 ml and $2.00 for the remaining 20 ml).
“Vaping rates among young people in Canada remain high, and the federal government recognizes the potential risks that vaping products post to them,” says the 2022 federal budget document.
A Health Canada survey found 36 per cent of Canadians between the ages of 15 and 19 have tried vaping products. That number rises to 48 per cent for those between 20 and 24.
The budget document outlines projected revenues of $654 million over the next five years, with $69 million coming in the 2022-2023 fiscal year, after which revenues would increase to $145 million for the next three fiscal years. In 2026-2027, the government projects the tax would bring in $150 million.
The federal government also wants provinces and territories to team up to create a vaping taxation framework – under which an additional tax equal to the proposed federal rate would apply. The revenues would be split 50/50 between the federal government and the provincial and territorial governments.
With files from CTVNews.ca’s Sarah Turnbull and the Canadian Press
Get in touch
What do you want to know about the budget? Email dotcom@bellmedia.ca.
- Please include your name, location, and contact information if you are willing to speak to a journalist with CTV News.
- Your comments may be used in a CTVNews.ca story.
Collapse
IN DEPTH
Special rapporteur Johnston rejects call to 'step aside' after majority of MPs vote for him to resign
Prime Minister Justin Trudeau's efforts to assure Canadians that his government is adequately addressing the threat of foreign interference took a hit on Wednesday, when the majority of MPs in the House of Commons voted for special rapporteur David Johnston to 'step aside,' a call Johnston quickly rejected.

NDP MP wants 'democratic controls' on the prime minister's powers
A New Democrat MP is trying to convince his colleagues to change the rules that govern the House of Commons in a series of ways he says would instill 'democratic controls' on the prime minister's 'unfettered' powers.
As it happened: Deal reached between feds, union for 120,000 striking public servants
Monday morning, the Public Service Alliance of Canada announced it had reached a 'tentative' agreement with the federal government for the 120,000 picketing Treasury Board workers who, since April 19, had been engaged in one of the largest strikes in Canadian history. Here's a rundown of the developments from Parliament Hill as they happened.
MPs need to plug legislative 'holes' to address foreign interference before next election: party reps
The House committee studying foreign election interference heard from top 2019 and 2021 Liberal and Conservative campaign directors on Tuesday, with party officials from both camps speaking about the need for politicians to come together to address any "legislative gaps" ahead of the next vote.
Budget 2023 prioritizes pocketbook help and clean economy, deficit projected at $40.1B
In the 2023 federal budget, the government is unveiling continued deficit spending targeted at Canadians' pocketbooks, public health care and the clean economy.
Opinion
opinion | Don Martin: The lessons for Pierre Poilievre from the Alberta election
Danielle Smith's win in the Alberta election hands her the most starkly divided province confronting any premier in Canada, writes commentator Don Martin.

Opinion | Don Martin: David Johnston's reputation is but a smouldering ruin
Special rapporteur David Johnston didn't recommend public inquiry knowing it was a pathetically insufficient response for a foreign democratic assault of this magnitude, writes Don Martin in an exclusive column for CTVNews.ca.
opinion | Don Martin: Passport furor foreshadows a dirty-tricks campaign where perceptions will be reality
To frame a few new illustrations on pages tucked inside a passport as proof of a Liberal plot to purge the Canadian historical record seems like a severe stretch, writes Don Martin in an exclusive column for CTVNews.ca.
opinion | Don Martin: The stunning fall of the once-promising Marco Mendicino
Public Safety Minister Marco Mendicino is a bright former federal prosecutor, who was destined to be a star in Justin Trudeau's cabinet. But in an opinion column on CTVNews.ca, Don Martin argues Mendicino has taken a stunning fall from grace, stumbling badly on important issues just 18 months into the job.
opinion | Don Martin: In the battle for Alberta, it's Smith versus her mouth
It's the most peculiar of elections with the frontrunner and her main opponent being the same person, writes columnist Don Martin. 'In the looming Alberta showdown, it's Premier Danielle Smith versus her mouth.'
CTVNews.ca Top Stories
Wildfire battles continue under heat, air quality alerts over most of Canada
The battle against hundreds of wildfires continues, as almost every jurisdiction in Canada remains under either heat or air quality warnings from the federal government. The day after what was supposed to be national Clean Air Day, dozens of alerts remain in place for unseasonable heat or smoky air quality.

Can face masks help protect you from wildfire smoke? Health expert explains
An official recommendation to wear a mask to protect yourself from wildfire smoke is being echoed by health experts as plumes of smoke make their way across parts of Canada, causing poor air quality.
Supporters focus on freeing Canadian held in China amid geopolitical 'ups and downs'
A leader of the fight to secure freedom for a Canadian human-rights activist detained in China for 17 years is taking the latest diplomatic deep-freeze between Ottawa and Beijing in stride.
Documents reveal what happened inside the discord at Canada's drug-price regulator
Internal emails from the agency tasked with regulating the price of patented drugs in Canada shows discord and division was sparked by a letter from the health minister, culminating in an indefinite pause on major drug-price reforms and several resignations.
Experts worry about Canadian water bomber expertise with rising demand, aging fleets
Aviation experts say Canada is losing expertise in the manufacturing of water bombers -- just as demand for them is increasing. The Canadair CL-415, a purpose-built water bomber, was last produced in 2015.
Calgary mass killer Matthew de Grood seeks 'absolute discharge'
The man who was found not criminally responsible in the stabbing deaths of five people at a house party in Brentwood more than nine years ago is seeking more freedoms.
RBC Canadian Open teeing off amid controversy in golf world
Some of the world's top players are teeing off at the RBC Canadian Open today amid the hotly debated LIV Golf-PGA Tour controversy that shook the golf world this week.
5 things to know for Thursday, June 8, 2023
Heat or air quality warnings countrywide, new Nanos polling shows most Canadians support an inquiry into foreign interference, and the Bank of Canada hikes rates again.
UNICEF says 300 trapped children rescued from a Sudanese orphanage after 71 others died
About 300 infants, toddlers and older children have been rescued from an orphanage in Sudan's capital after being trapped there while fighting raged outside, aid officials said Thursday. The evacuation came after 71 children died from hunger and illness in the facility since mid-April.