EDM1.5.1 Rates of Excise Duty

March 2010

This memorandum sets out the rates of excise duty imposed under the Excise Act, 2001 (the Act) on spirits, wine and tobacco products as of the date of this memorandum. It also sets out the rates of special duty on spirits, and the rates of additional duty and special duty on tobacco products. For historical purposes, rates from July 1, 2003 have been included. This memorandum does not include the rates of excise duty on beer. Excise duties on beer continue to be imposed under the Excise Act and the rates for beer are published on the CRA Web site at www.cra-arc.gc.ca/tx/tchncl/xcs-ct-ntcs-eng.html.

Note
This replaces Excise Duty Memorandum 1.5.1 dated July 2006.

Disclaimer
The information in this document does not replace the law found in 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 (CRA) regional excise duty office for additional information. These offices are listed in Excise Duty Memorandum 1.1.2, Regional Excise Duty Offices .

Table of Contents

Excise duty on spirits
Special duty on spirits
Excise duty on wine
Excise duty on tobacco products
Excise duty on Blackstock tobacco products manufactured in Canada for delivery by the manufacturer to foreign or Canadian duty free shops, to customs bonded warehouses, or for use as foreign or Canadian ships’ stores
Additional duty on cigars
Special duty on imported manufactured tobacco delivered to a Canadian duty free shop
Special duty on travellers’ tobacco
Special duty on tobacco products manufactured in Canada and exported

Excise duty on spirits

Imposed under subsections 122(1) and 123(b)

Percentage of absolute ethyl alcohol by volume	Excise duty	Legislative Reference
Spirits containing more than 7% of absolute ethyl alcohol (as of July 1, 2006) Historical July 1, 2003 to June 30, 2006	$11.696 per litre of absolute ethyl alcohol Historical $11.066 per litre of absolute ethyl alcohol	Schedule 4 Section 1
Spirits containing not more than 7% of absolute ethyl alcohol (as of July 1, 2006) Historical July 1, 2003 to June 30, 2006	$0.295 per litre of spirits Historical $0.2459 per litre of spirits	Schedule 4 Section 2

Special duty on spirits

Imposed under subsection 133(1)

Percentage of absolute ethyl alcohol by volume	Special duty	Legislative Reference
Spirits containing more than 0.5% absolute ethyl alcohol (as of July 1, 2003)	$0.12 per litre of absolute ethyl alcohol	Schedule 5

* Special duty is payable on imported spirits delivered to or imported by a licensed user.

Excise duty on wine

Imposed under subsections 134(1) and 135(1)

Percentage of absolute ethyl alcohol by volume	Excise duty	Legislative Reference
Wine containing more than 7% absolute ethyl alcohol by volume (as of July 1, 2006) Historical July 1, 2003 to June 30, 2006	$0.62 per litre Historical $0.5122 per litre	Schedule 6 paragraph (c)
Wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume (as of July 1, 2006) Historical July 1, 2003 to June 30, 2006	$0.295 per litre Historical $0.2459 per litre	Schedule 6 paragraph (b)
Wine containing not more than 1.2% of absolute ethyl alcohol by volume (as of July 1, 2003)	$0.0205 per litre	Schedule 6 paragraph (a)

Excise duty on tobacco products

Imposed under Subsection 42(1)

Product category	Excise duty	Legislative Reference
Cigarettes (as of January 1, 2008) Historical July 1, 2006 to December 31, 2007 July 1, 2003 to June 30, 2006	$0.425 per five or fraction of five cigarettes contained in any package Historical $0.41025 per five or fraction of five cigarettes contained in any package $0.396255 per five or fraction of five cigarettes contained in any package	Schedule 1 paragraph 1(b)
Tobacco sticks (as of February 27, 2008) Historical January 1, 2008 to February 26, 2008 July 1, 2006 to December 31, 2007 July 1, 2003 to June 30, 2006	$0.085 per stick Historical $0.06325 per stick $0.0605 per stick $0.057983 per stick	Schedule 1 paragraph 2(b)
Manufactured tobacco – other (as of July 1, 2008) Historical January 1, 2008 to June 30, 2008 July 1, 2006 to December 31, 2007 July 1, 2003 to June 30, 2006	$2.8925 per 50 grams or fraction of 50 grams contained in a package Historical $57.85per kilogram $55.90 per kilogram $53.981 per kilogram	Schedule 1 paragraph 3(b)
Raw leaf tobacco (as of July 1, 2003)	$1.572 per kilogram	Schedule 1 section 5
Cigars (as of January 1, 2008) Historical July 1, 2006 to December 31, 2007 July 1, 2003 to June 30, 2006	$18.50 per 1,000 cigars Historical $16.60 per 1,000 cigars $14.786 per 1,000 cigars	Schedule 1 section 4

Excise duty on Blackstock tobacco products manufactured in Canada for delivery by the manufacturer to foreign or Canadian duty free shops, to customs bonded warehouses, or for use as foreign or Canadian ships’ stores

Imposed under Subsection 42(1)

Product category	Excise duty	Legislative Reference
Cigarettes (as of July 1, 2003)	$0.374875 per five or fraction of five cigarettes contained in any package	Schedule 1 paragraph 1(a)
Tobacco sticks (as of February 27, 2008) Historical July 1, 2003 to February 26, 2008	$0.074975 per stick Historical $0.054983 per stick	Schedule 1 paragraph 2(a)
Manufactured tobacco – other (as of July 1, 2008) Historical July 1, 2003 to June 30, 2008	$2.49915 per 50 grams or fraction of 50 grams contained in a package Historical $49.983 per kilogram	Schedule 1 paragraph 3(a)

Additional duty on cigars

Imposed under Section 43

Product category	Additional duty	Legislative Reference
Cigars (as of January 1, 2008) Historical July 1, 2006 to December 31, 2007 July 1, 2003 to June 30, 2006	greater of $0.067 per cigar and 67%* Historical greater of $0.066 per cigar and 66% greater of $0.065 per cigar and 65%.	Schedule 2

* 67% of the Canadian manufacturer’s sale price or of the duty-paid value if imported. (In practice, the additional duty will seldom be $0.067 per cigar, as the 67% rate will normally be the greater.)

Special duty on imported manufactured tobacco delivered to a Canadian duty free shop

Imposed under subsection 53(1)

Product category	Special duty	Legislative Reference
Cigarettes (as of July 1, 2003)	$0.075 per cigarette	Schedule 3 paragraph 1(a)
Tobacco Sticks (as of February 27, 2008) Historical July 1, 2003 to February 26, 2008)	$0.075 per stick Historical $0.055 per stick	Schedule 3 paragraph 1(b)
Manufactured tobacco other than cigarettes and tobacco sticks (as of July 1, 2008) Historical July 1, 2003 to June 30, 2008	$2.50 per 50 grams or fraction of 50 grams contained in a package Historical $0.05 per gram	Schedule 3 paragraph 1(c)

Special duty on travellers’ tobacco

Imposed under subsection 54(2)M

Product category	Special duty	Legislative Reference
Cigarettes (as of July 1, 2003)	$0.075 per cigarette	Schedule 3 paragraph 2(a)
Tobacco Sticks (as of February 27, 2008) Historical July 1, 2003 to February 26, 2008	$0.075 per stick Historical $0.055 per stick	Schedule 3 paragraph 2(b)
Manufactured tobacco other than cigarettes and tobacco sticks (as of July 1, 2008) Historical July 1, 2003 to June 30, 2008	$2.50 per 50 grams or fraction of 50 grams contained in a package Historical $0.05 per gram	Schedule 3 paragraph 2(c)

Special duty on tobacco products manufactured in Canada and exported

Imposed under paragraph 56(1)(a) where exported in accordance with paragraph 50(4)(a)

Product category	Special duty	Legislative Reference
Cigarettes (as of July 1, 2003)	$0.075 per cigarette	Schedule 3 paragraph 3(a)
Tobacco Sticks (as of February 27, 2008) Historical July 1, 2003 to February 26, 2008	$0.075 per stick Historical $0.055 per stick	Schedule 3 paragraph 3(b)
Manufactured tobacco other than cigarettes and tobacco sticks (as of July 1, 2003)	$50.00 per kilogram	Schedule 3 paragraph 3(c)

All of the memoranda in the Excise Duty Memoranda Series are available on the CRA Web site at www.cra.gc.ca/exciseduty, under Excise Act, 2001 – Technical Information.