Excise Duty Rate Changes – July 1, 2006
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Excise Duty Rate Changes – July 1, 2006
May 2006
On May 2, 2006, the Minister of Finance tabled a Notice of Ways and Means Motion, which amends the Excise Act and Excise Act, 2001 to introduce new excise duty rates. These rates take effect July 1, 2006. This notice sets out the rates of excise duty on beer, spirits, wine, and tobacco products as of that date. The rates that are being changed appear in bold type.
Beer
For small and mid-sized licensed Canadian brewers, the rates of excise duty on beer will be based on their annual volumes of production in the previous and current calendar year. For an explanation of how the new reduced rates will apply in relation to production volumes, please refer to the Excise Duty Notice, Change in Excise Duty Rate on Beer Produced by a Small and Mid-Sized Brewers (EDBN6).
For imported beer, which is subject to additional duty equal to excise duty under subsection 21.3 of the Customs Tariff, the full rates of duty will continue to apply.
Tobacco products
There are no changes to any of the rates of special duty that apply to tobacco products. Also, there are no changes to the rates of excise duty imposed on Canadian manufactured cigarettes, tobacco sticks, or other manufactured tobacco that are destined for sale in Canadian or foreign duty free shops or for use as Canadian or foreign ships' stores.
The Notice of Ways and Means Motion also introduced a one-time tax on inventories of tobacco products held on July 1, 2006. More information on this inventory tax is available in the Excise Duty Notice, Tobacco Products Inventory Tax (EDN10).
Further information on the excise duty rates may be obtained from the regional excise duty offices. A list of regional excise duty offices is available in Excise Duty Memorandum 1.1.2, Regional Excise Duty Offices on CRA's Web site at www.cra-arc.gc.ca/menu/EXMS-e.html.
This Excise Duty notice does not replace the law found in the Excise Act, the Excise Act, 2001 or their regulations. It is provided for convenience and reference purposes only. Since it may not completely address your particular operation, you may wish to refer to the relevant act or regulations or contact your regional excise duty office for additional information.
Excise Duty Rate Summary
Effective July 1, 2006
Please note that the new rates are shown in bold type.
Spirits
| Spirits | $11.696 per litre of absolute ethyl alcohol |
| Spirits - not more than 7% of absolute ethyl alcohol | $0.295 per litre of spirits |
| Spirits – special duty* | $0.12 per litre of absolute ethyl alcohol |
*Special duty is payable on imported spirits delivered to or imported by a licensed user.
Wine
| More than 7% of absolute ethyl alcohol by volume | $0.62 per litre |
| More than 1.2% of absolute ethyl alcohol by volume but not more than 7% of absolute ethyl alcohol by volume | $0.295 per litre |
| Not more than 1.2% of absolute ethyl alcohol by volume | $0.0205 per litre |
Beer
Made by domestic brewers with production of more than 300,000 hectolitres per year and all imported beer
| More than 2.5% of absolute ethyl alcohol by volume | $31.22 per hectolitre |
| More than 1.2% of absolute ethyl alcohol by volume but not more than 2.5% of absolute ethyl alcohol by volume | $15.61 per hectolitre |
| Not more than 1.2% of absolute ethyl alcohol by volume | $2.591 per hectolitre |
Domestic production – small and mid-sized brewers
More than 2.5% of absolute ethyl alcohol
|
Annual production volume increments (hectolitres) |
Applicable rate (per hectolitre) |
|---|---|
|
0 – 2,000 |
$3.122 |
|
2,001 – 5,000 |
$6.244 |
|
5,001 – 15,000 |
$12.488 |
|
15,001 – 50,000 |
$21.854 |
|
50,001 – 75,000 |
$26.537 |
|
75,001 – 300,000 |
$31.22 |
More than 1.2% but not more than 2.5% of absolute ethyl alcohol
|
Annual production volume increments (hectolitres) |
Applicable rate (per hectolitre) |
|---|---|
|
0 – 2,000 |
$1.561 |
|
2,001 – 5,000 |
$3.122 |
|
5,001 – 15,000 |
$6.244 |
|
15,001 – 50,000 |
$10.927 |
|
50,001 – 75,000 |
$13.269 |
|
75,001 – 300,000 |
$15.61 |
Not more than 1.2% of absolute ethyl alcohol
|
Annual production volume increments (hectolitres) |
Applicable rate (per hectolitre) |
|---|---|
|
0 – 2,000 |
$0.259 |
|
2,001 – 5,000 |
$0.518 |
|
5,001 – 15,000 |
$1.036 |
|
15,001 – 50,000 |
$1.814 |
|
50,001 – 75,000 |
$2.202 |
|
75,001 – 300,000 |
$2.591 |
Note: The reduced rates do not apply to licensed brewers whose annual beer production is greater than 300,000 hectolitres.
Tobacco products
All provinces and territories – regular domestic market
| Excise Duty | Additional Duty | |
|---|---|---|
|
Cigarettes |
$0.41025 per five or fraction of five cigarettes |
N/A |
|
Tobacco sticks |
$0.0605 per stick |
N/A |
|
Manufactured tobacco – other |
$55.90 per kilogram |
N/A |
|
Raw leaf tobacco |
$1.572 per kilogram |
N/A |
|
Cigars |
$16.60 per 1,000 cigars |
Greater of $0.066 or 66%* |
* 66% of the Canadian manufacturer's sale price or of the duty paid value, if imported. (In reality, the additional duty would seldom be $0.066 per cigar, as the 66% rate will normally be the greater.)
Cigarettes, Tobacco Sticks, Other Manufactured Tobacco – for duty free shops, ships' stores or export markets
Canadian manufactured cigarettes
|
For delivery to |
Excise Duty |
Special Duty |
|---|---|---|
|
Foreign or Canadian duty free shops, Customs bonded warehouses, or foreign or Canadian ships' stores. |
$0.374875 |
N/A |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if not more than 1.5% of previous calendar year's production. |
N/A |
$0.075 |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if greater than 1.5% of previous calendar year's production. |
$0.41025 |
$0.095724 |
Canadian manufactured tobacco sticks
|
For delivery to |
Excise Duty |
Special Duty |
|---|---|---|
|
Foreign or Canadian duty free shops, Customs bonded warehouses, or foreign or Canadian ships' stores. |
$0.054983 |
N/A |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if not more than 1.5% of previous calendar year's production. |
N/A |
$0.055 |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if greater than 1.5% of previous calendar year's production. |
$0.0605 |
$0.042 |
Canadian manufactured tobacco (other)
|
For delivery to |
Excise Duty |
Special Duty |
|---|---|---|
|
Foreign or Canadian duty free shops, Customs bonded warehouses, or foreign or Canadian ships' stores. |
$49.983 |
N/A |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if not more than 1.5% of previous calendar year's production. |
N/A |
$50.00 |
|
Export markets (other than to foreign duty free shops or for use as foreign ships' stores) if greater than 1.5% of previous calendar year's production. |
$55.90 |
$46.002 |
|
Product Category |
Excise Duty |
Special Duty |
|---|---|---|
|
Cigarettes |
N/A |
$0.075 per cigarette |
|
Tobacco sticks |
N/A |
$0.055 per stick |
|
Other manufactured tobacco (excludes cigars) |
N/A |
$0.05 per gram |
|
Product Category |
Excise Duty |
Special Duty |
|---|---|---|
|
Cigarettes |
N/A |
$0.075 per cigarette |
|
Tobacco sticks |
N/A |
$0.055 per stick |
|
Other manufactured tobacco (excludes cigars) |
N/A |
$0.05 per gram |
- Date modified:
- 2017-06-22