EDBN35 Adjusted rates of excise duty on beer effective April 1, 2025
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EDBN35 Adjusted rates of excise duty on beer effective April 1, 2025
Excise Duty Notice
February 2025
This notice provides information about the adjusted rates of excise duty that will become payable on beer on or after April 1, 2025.
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.
Table of Contents
General information
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 amendments to the Act that were included in Bill C-69, Budget Implementation Act, 2024, No. 1, which received royal assent on June 20, 2024, this adjustment was capped at 2% for two additional years and the rates of excise duty on the first 15,000 hectolitres of beer brewed in Canada were cut by half for two years.
Beer includes malt liquor.
The adjusted rates of excise duty that will become payable on beer on or after April 1, 2025, 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 are 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, 2025 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $3.067 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $18.48 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $36.95 per hectolitre |
Reduced rates of excise duty on beer brewed by domestic brewers
The reduced rates of excise duty are 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, 2025 |
|---|---|
| 0 to 2,000 hectolitres | $0.15335 per hectolitre |
| 2,001 to 5,000 hectolitres | $0.3067 per hectolitre |
| 5,001 to 15,000 hectolitres | $0.6134 per hectolitre |
| 15,001 to 50,000 hectolitres | $2.1469 per hectolitre |
| 50,001 to 75,000 hectolitres | $2.6070 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2025 |
|---|---|
| 0 to 2,000 hectolitres | $0.924 per hectolitre |
| 2,001 to 5,000 hectolitres | $1.848 per hectolitre |
| 5,001 to 15,000 hectolitres | $3.696 per hectolitre |
| 15,001 to 50,000 hectolitres | $12.936 per hectolitre |
| 50,001 to 75,000 hectolitres | $15.708 per hectolitre |
| Annual production volume increments | Rate effective April 1, 2025 |
|---|---|
| 0 to 2,000 hectolitres | $1.8475 per hectolitre |
| 2,001 to 5,000 hectolitres | $3.695 per hectolitre |
| 5,001 to 15,000 hectolitres | $7.390 per hectolitre |
| 15,001 to 50,000 hectolitres | $25.865 per hectolitre |
| 50,001 to 75,000 hectolitres | $31.408 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 excise duties, go to Excise duties technical information.
For information on how to make a general or technical enquiry on excise duties, go to Contact information – Excise and Specialty Tax Directorate.
For information on how to request a ruling or interpretation related to excise duties, go to Requesting an excise and specialty tax ruling or interpretation.
Page details
- Date modified:
- 2025-02-12