EDN45 Changes to Excise Duty Rates on Spirits and Wine
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EDN45 Changes to Excise Duty Rates on Spirits and Wine
March 2017
The information in this notice is for reference purposes only and does not replace the Excise Act, 2001 or its regulations. Should there be any discrepancy between the information in this notice and that contained in the Act or its regulations, the legislative provisions apply. As the information in this publication may not completely address your particular situation, you may wish to refer to the Act or appropriate regulation, or contact any Canada Revenue Agency regional excise duty office for additional information. These offices are listed in Excise Duty Memorandum EDM1.1.2, Regional Excise Duty Offices.
All legislative references in this publication are to the Excise Act, 2001 (the Act), unless otherwise specified.
Any commentary in this notice should not be taken as a statement by the Canada Revenue Agency that the proposed amendments will be enacted in their current form.
On March 22, 2017, the Minister of Finance tabled Budget 2017 and an accompanying Notice of Ways and Means Motion, which proposes amendments to the Excise Act, 2001 to increase the rates of excise duty on alcohol. These rates apply to the excise duty on spirits and wine that becomes payable on or after March 23, 2017.
The new rates are outlined in the following tables. For more information, please contact your regional excise duty office.
Spirits
Excise duty is imposed on spirits under sections 122 and 123, and the rates are set out in Schedule 4.
| Spirits containing | Previous rate | New rate |
|---|---|---|
| More than 7% of absolute ethyl alcohol by volume | $11.696 per litre of absolute ethyl alcohol | $11.93 per litre of absolute ethyl alcohol |
| Not more than 7% of absolute ethyl alcohol by volume | $0.295 per litre of spirits | $0.301 per litre of spirits |
Wine
Excise duty is imposed on wine under subsections 134(1) and 135(1), and the rates are set out in Schedule 6.
| Wine containing | Previous rate | New rate |
|---|---|---|
| More than 7% of absolute ethyl alcohol by volume | $0.62 per litre | $0.63 per litre |
| More than 1.2%, but not more than 7%, of absolute ethyl alcohol by volume | $0.295 per litre | $0.301 per litre |
| Not more than 1.2% of absolute ethyl alcohol by volume | $0.0205 per litre | $0.0209 per litre |
Effective date
The new rates detailed above apply to spirits and wine where excise duty becomes payable on or after March 23, 2017. Generally, excise duty becomes payable when spirits or wine are packaged unless the spirits or wine are entered into an excise warehouse. The new rates will apply to spirits and wine that are removed from an excise warehouse on or after March 23, 2017. The CRA will collect the new rate of excise duty payable on or after March 23, 2017 on a voluntary basis until such time as the amendments become law (i.e., Royal Assent). Importers and licensees that do not remit the duty in accordance with the new rates will be required to pay interest on unpaid amounts once Royal Assent is received.
Annual adjustments
The Notice of Ways and Means Motion also proposes to amend the Excise Act, 2001 to adjust the excise duty rates annually. The rates will be indexed to the Consumer Price Index with the first inflationary rate adjustment effective April 1, 2018. The CRA will publish the adjusted rates each year, well in advance of April 1.
Further information
All technical publications related to the Excise Act, 2001 and its regulations are available on the CRA website. Go to cra.gc.ca/exciseduty and click on “Excise Act, 2001 – Technical Information” under the Publications heading.
To request a ruling or interpretation or make a technical enquiry on excise duty, contact one of the regional excise duty offices listed in Excise Duty Memorandum EDM1.1.2, Regional Excise Duty Offices.
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- Date modified:
- 2017-03-22