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).

Excise duty on spirits and special duty on certain spirits
Product Rate Special duty rate Effective Set out in
Spirits containing more than 7% of absolute ethyl alcohol by volume $11.696 per litre of absolute ethyl alcohol July 1, 2006 Section 1 of Schedule 4
Spirits containing not more than 7% of absolute ethyl alcohol by volume $0.295 per litre of spirits July 1, 2006 Section 2 of Schedule 4
Spirits delivered to or imported by a licensed user $0.12 per litre of absolute ethyl alcohol July 1, 2003 Schedule 5

Wine

2. Excise duty is imposed on wine under subsections 134(1) and 135(1).

Excise duty on wine
Product Rate Effective Set out in
Wine containing more than 7% of absolute ethyl alcohol by volume $0.62 per litre July 1, 2006 Paragraph (c) of Schedule 6
Wine containing more than 1.2% but not more than 7% of absolute ethyl alcohol by volume $0.295 per litre July 1, 2006 Paragraph (b) of Schedule 6
Wine containing not more than 1.2% of absolute ethyl alcohol by volume $0.0205 per litre July 1, 2003 Paragraph (a) of Schedule 6

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.

Excise duty on tobacco products
Product Rate Effective Set out in
Cigarettes $0.52575 per five or fraction of five cigarettes contained in any package February 12, 2014 Paragraph 1(a) of Schedule 1
Tobacco sticks $0.10515 per stick February 12, 2014 Paragraph 2(a) of Schedule 1
Manufactured tobacco (other than cigarettes and tobacco sticks) $6.57188 per 50 grams or fraction of 50 grams contained in a package February 12, 2014 Paragraph 3(a) of Schedule 1
Cigars $22.88559 per 1,000 cigars February 12, 2014 Paragraph 4(a) of Schedule 1
Raw leaf tobacco (Canadian or imported) $1.572 per kilogram July 1, 2003 Section 5 of Schedule 1

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

  1. $0.08226* per cigar, and
  2. 82%, computed on
    1. the sale price, in the case of cigars manufactured in Canada, or
    2. 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.

Special duty on imported manufactured tobacco
Product Rate Effective Set out in
Cigarettes $0.10515 per cigarette February 12, 2014 Paragraph 1(a) of Schedule 3
Tobacco sticks $0.10515 per stick February 12, 2014 Paragraph 1(b) of Schedule 3
Manufactured tobacco (other than cigarettes and tobacco sticks) $6.57188 per 50 grams or fraction of 50 grams contained in a package February 12, 2014 Paragraph 1(c) of Schedule 3

7. Under subsection 54(2), a special duty is imposed on traveller’s tobacco at the time it is imported.

Special duty on traveller’s tobacco
Product Rate Effective Set out in
Cigarettes $0.10515 per cigarette February 12, 2014 Paragraph 2(a) of Schedule 3
Tobacco sticks $0.10515 per stick February 12, 2014 Paragraph 2(b) of Schedule 3
Manufactured tobacco (other than cigarettes and tobacco sticks) $6.57188 per 50 grams or fraction of 50 grams contained in a package February 12, 2014 Paragraph 2(c) of Schedule 3

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).

Special duty on unstamped tobacco products
Product Rate Effective Set out in
Cigarettes $0.10515 per cigarette February 12, 2014 Paragraph 3(a) of Schedule 3
Tobacco sticks $0.10515 per stick February 12, 2014 Paragraph 3(b) of Schedule 3
Tobacco products (other than cigarettes and tobacco sticks) $131.4376 per kilogram February 12, 2014 Paragraph 3(c) of Schedule 3

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).

Special duty on stamped tobacco products
Product Rate Effective Set out in
Cigarettes $0.095724 per cigarette February 27, 2008 Paragraph 4(a) of Schedule 3
Tobacco sticks $0.095724 per stick February 27, 2008 Paragraph 4(b) of Schedule 3
Tobacco products (other than cigarettes and tobacco sticks) $5.98275 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 Paragraph 4(c) of Schedule 3

Historical rates

10. Rates dating back to July 1, 2003 are included for information purposes, where applicable.

Spirits

Excise duty on spirits
Product Rate Period
Spirits containing more than 7% of absolute ethyl alcohol by volume $11.066 per litre of absolute ethyl alcohol July 1, 2003 to June 30, 2006
Spirits containing not more than 7% of absolute ethyl alcohol by volume $0.2459 per litre of spirits July 1, 2003 to June 30, 2006

Wine

Excise duty on wine
Product Rate Period
Wine containing more than 7% of absolute ethyl alcohol by volume $0.5122 per litre July 1, 2003 to June 30, 2006
Wine containing more than 1.2% but not more than 7% of absolute ethyl alcohol by volume $0.2459 per litre July 1, 2003 to June 30, 2006

Tobacco

Excise duty and additional duty on tobacco products

Excise duty on manufactured tobacco
Cigarettes Tobacco sticks Manufactured tobacco other than cigarettes and tobacco sticks Period
$0.425 per five or fraction of five cigarettes contained in any package January 1, 2008 to February 11, 2014
$0.085 per stick February 27, 2008 to February 11, 2014
$5.3125 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 to February 11, 2014
$2.8925 per 50 grams or fraction of 50 grams contained in a package July 1, 2008 to March 21, 2013
$57.85 per kilogram January 1, 2008 to June 30, 2008
$0.06325 per stick January 1, 2008 to February 26, 2008
$0.41025 per five or fraction of five cigarettes contained in any package $0.0605 per stick $55.90 per kilogram July 1, 2006 to December 31, 2007
$0.396255 per five or fraction of five cigarettes contained in any package $0.057983 per stick $53.981 per kilogram July 1, 2003 to June 30, 2006
Excise duty and additional duty on cigars
Duty Additional duty Period
$18.50 per 1,000 cigars Greater of $0.067 per cigar and 67%* January 1, 2008 to February 11, 2014
$16.60 per 1,000 cigars Greater of $0.066 per cigar and 66%* July 1, 2006 to December 31, 2007
$14.786 per 1,000 cigars Greater of $0.065 per cigar and 65%* July 1, 2003 to June 30, 2006

* 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.

Excise duty on black stock manufactured tobacco
Cigarettes Tobacco sticks Manufactured tobacco other than cigarettes and tobacco sticks Period
$0.374875 per five or fraction of five cigarettes contained in any package July 1, 2003 to February 11, 2014
$0.074975 per stick February 27, 2008 to February 11, 2014
$4.685938 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 to February 11, 2014
$2.49915 per 50 grams or fraction of 50 grams contained in a package July 1, 2008 to March 21, 2013
$49.983 per kilogram July 1, 2003 to June 30, 2008
$0.054983 per stick July 1, 2003 to February 26, 2008

Special duties on certain manufactured tobacco

Special duty on imported manufactured tobacco delivered to a Canadian duty free shop
Cigarettes Tobacco sticks Manufactured tobacco other than cigarettes and tobacco sticks Period
$0.075 per cigarette July 1, 2003 to February 11, 2014
$0.075 per stick February 27, 2008 to February 11, 2014
$4.6875 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 to February 11, 2014
$2.50 per 50 grams or fraction of 50 grams contained in a package July 1, 2008 to March 21, 2013
$0.05 per gram July 1, 2003 to June 30, 2008
$0.055 per stick July 1, 2003 to February 26, 2008
Special duty on traveller’s tobacco
Cigarettes Tobacco sticks Manufactured tobacco other than cigarettes and tobacco sticks Period
$0.075 per cigarette July 1, 2003 to February 11, 2014
$0.075 per stick February 27, 2008 to February 11, 2014
$4.6875 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 to February 11, 2014
$2.50 per 50 grams or fraction of 50 grams contained in a package July 1, 2008 to March 21, 2013
$0.05 per gram July 1, 2003 to June 30, 2008
$0.055 per stick July 1, 2003 to February 26, 2008
Special duty on unstamped tobacco products manufactured in Canada and exported
Cigarettes Tobacco sticks Tobacco products other than cigarettes and tobacco sticks Period
$0.075 per cigarette July 1, 2003 to February 11, 2014
$0.075 per stick February 27, 2008 to February 11, 2014
$93.75 per kilogram March 22, 2013 to February 11, 2014
$50 per kilogram June 19, 2003 to March 21, 2013
$0.055 per stick July 1, 2003 to February 26, 2008
Special duty on stamped tobacco products manufactured in Canada and exported
Cigarettes Tobacco sticks Tobacco products other than cigarettes and tobacco sticks Period
$0.095724 per cigarette $0.095724 per stick February 27, 2008 to February 11, 2014
$0.068224 per cigarette $0.042 per stick June 19, 2003 to February 26, 2008
$5.98275 per 50 grams or fraction of 50 grams contained in a package March 22, 2013 to February 11, 2014
$2.3001 per 50 grams or fraction of 50 grams contained in a package July 1, 2008 to March 21, 2013
$46.002 per kilogram June 19, 2003 to June 30, 2008

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.

Return to footnote 1 referrer


Date modified:
2014-09-18