Adjusted Rates of Excise Duty on Beer Effective April 1, 2023
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Adjusted Rates of Excise Duty on Beer Effective April 1, 2023
Excise Duty Notice EDBN32
July 2023
This version replaces the one dated March 2023. This notice has been updated to revise the adjusted rates of excise duty as a result of changes to the Excise Act.
This notice provides information about the adjusted rates of excise duty that became payable on beer effective April 1, 2023.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act. The information in this publication does not replace the law found in the Act and its regulations.
If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.
General
Under the Excise Act, the rates of excise duty on beer are adjusted annually every April 1 based on changes to the Consumer Price Index. However, as a result of an amendment to the Excise Act that was included in Bill C-47, Budget Implementation Act, 2023, No. 1, which received royal assent on June 22, 2023, this adjustment was temporarily capped at 2% for one year only, as of April 1, 2023.
Beer includes malt liquor.
The adjusted rates of excise duty that became payable on beer effective April 1, 2023, are listed in the tables below.
Beer that contains not more than 0.5% absolute ethyl alcohol by volume (that is, non-alcoholic beer) is not subject to excise duty.
Regular rates of excise duty on beer packaged in Canada
The regular rates of excise duty were determined in accordance with Part II of the Schedule to the Act. They apply to the following:
- beer packaged in Canada in excess of 75,000 hectolitres in a calendar year
- beer packaged in Canada that is either:
- imported beer
- produced from imported wort
| Product | Rate effective April 1, 2023 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $2.948 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $17.76 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $35.52 per hectolitre |
Reduced rates of excise duty on beer brewed by domestic brewers
The reduced rates of excise duty were determined in accordance with Part II.1 of the Schedule to the Act. They apply to the first 75,000 hectolitres of beer brewed in Canada (production volume limit) each calendar year by a licensed brewer and any person related to or associated with that brewer.
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $0.2948 per hectolitre |
| 2,001 to 5,000 hectolitres | $0.5896 per hectolitre |
| 5,001 to 15,000 hectolitres | $1.1792 per hectolitre |
| 15,001 to 50,000 hectolitres | $2.0636 per hectolitre |
| 50,001 to 75,000 hectolitres | $2.5058 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $1.776 per hectolitre |
| 2,001 to 5,000 hectolitres | $3.552 per hectolitre |
| 5,001 to 15,000 hectolitres | $7.104 per hectolitre |
| 15,001 to 50,000 hectolitres | $12.432 per hectolitre |
| 50,001 to 75,000 hectolitres | $15.096 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2023 |
|---|---|
| 0 to 2,000 hectolitres | $3.552 per hectolitre |
| 2,001 to 5,000 hectolitres | $7.104 per hectolitre |
| 5,001 to 15,000 hectolitres | $14.208 per hectolitre |
| 15,001 to 50,000 hectolitres | $24.864 per hectolitre |
| 50,001 to 75,000 hectolitres | $30.192 per hectolitre |
For a listing of current and historical rates of excise duty on beer, go to Excise Duty Rates.
Further information
For all technical publications related to the Excise Act and its regulations, go to Excise duties technical information under the Excise Act.
To make a general or technical enquiry on excise duties or to request a ruling or interpretation related to excise duties, go to Contact Information – Excise and Specialty Tax Directorate.
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- Date modified:
- 2023-07-06