The Canadian Craft Brewers Association is fearful that an increase in the federal excise tax will sound the death knell for some craft breweries.

Starting April 1, the excise tax will increase by 6.3 per cent adding again to what the association says is the ever increasing cost of inflation.

Executive Director Christine Comeau says the cost of everything that goes into the production of Canadian craft beer has gone up including hops, barley and aluminum cans.

The industry accounts for some 21,000 jobs across the country and contributes to hospitality and tourism growth – particularly in rural areas.

The increase will make it hard for some businesses to survive says Comeau.

She says craft breweries have revitalized some communities by becoming a meeting place, venue for artists and performers and attracting and retaining people.