1.5.1 Rates of Excise Duty
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1.5.1 Rates of Excise Duty
September 2014
This version replaces the one dated July 2013.
This memorandum provides the current and historical rates of excise duty imposed on spirits, wine and tobacco products under the Excise Act, 2001, as well as effective dates. It also provides the rates of special duty on certain spirits and the rates of additional duty and special duty on certain tobacco products. This memorandum does not include the rates of excise duties on beer, which continue to be imposed under the Excise Act. The rates for beer are published on the CRA website at www.cra-arc.gc.ca/tx/tchncl/xcs-ct-ntcs-eng.html.
Disclaimer:
The information in this memorandum does not replace the law found in the Excise Act, 2001 (the Act) and its regulations. It is provided for your reference. As it may not completely address your situation, you may wish to refer to the Act or its regulations, 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.
Table of Contents
Current rates
Spirits
1. Excise duty is imposed on spirits under subsection 122(1) and paragraph 123(b), and a special duty is imposed on certain spirits under subsection 133(1).
Wine
2. Excise duty is imposed on wine under subsections 134(1) and 135(1).
Tobacco
3. As stated in section 43.1, the excise duty rates for tobacco products (except for raw leaf tobacco and stamped tobacco products) will be indexed to the Consumer Price Index and will be adjusted automatically every five years. The first inflationary rate adjustment will be effective December 1, 2019.
Excise duty on tobacco products
4. Excise duty is imposed under subsection 42(1) on tobacco products manufactured in Canada or imported and on raw leaf tobacco.
Additional duty on cigars
5. Under section 43, an additional duty is imposed on cigars manufactured in Canada or imported. The additional duty rate below is set out in Schedule 2.
The greater of
- $0.08226* per cigar, and
- 82%, computed on
- the sale price, in the case of cigars manufactured in Canada, or
- the duty-paid value, in the case of imported cigars.
* In practice, the additional duty will seldom be $0.08226 per cigar, as the 82% rate will normally be greater.
Special duties on certain manufactured tobacco
6. Under subsection 53(1), a special duty is imposed on imported manufactured tobacco that is delivered to a Canadian duty free shop and that is not stamped.
7. Under subsection 54(2), a special duty is imposed on traveller’s tobacco at the time it is imported.
8. Under paragraph 56(1)(a), a special duty is imposed on unstamped tobacco products manufactured in Canada and exported in accordance with paragraph 50(4)(a).
9. Under paragraph 56(1)(b), a special duty is imposed on stamped tobacco products manufactured in Canada and exported in accordance with paragraph 50(4)(a).
Historical rates
10. Rates dating back to July 1, 2003 are included for information purposes, where applicable.
Spirits
Wine
Tobacco
Excise duty and additional duty on tobacco products
* The percentage is computed either on the sale price, in the case of cigars manufactured in Canada, or on the duty-paid value, in the case of imported cigars.
11. The excise duty rates for black stockFootnote 1 manufactured tobacco that were in effect prior to February 12, 2014 are provided for information purposes. There no longer are separate excise duty rates for black stock manufactured tobacco as of that date.
Special duties on certain manufactured tobacco
All excise duty memoranda are available on the CRA website at www.cra.gc.ca/exciseduty, under “Excise Act, 2001 – Technical Information”.
Footnotes
- Footnote 1
-
The expression “black stock manufactured tobacco” means that the products are manufactured in Canada for delivery by the manufacturer (tobacco licensee) to Canadian duty free shops, customs bonded warehouses or to a person for use as Canadian ships’ stores in accordance with the Ships’ Stores Regulations, or for export by the manufacturer (tobacco licensee) for delivery to a foreign duty free shop or as foreign ships’ stores.
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2024-06-17