EDM1.5.1 Rates of Excise Duty

July 2013

NOTE: This version replaces the one dated 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 dates indicated in each table. It also sets out the rates of special duty on spirits, and the rates of additional duty and special duty on tobacco products. 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.

Disclaimer:
The information in this memorandum 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 regional excise duty office for additional information. These offices are listed in Excise Duty Memorandum EDM1.1.2, Regional Excise Duty Offices.

Excise duty on spirits

1. Excise duty is imposed on spirits under subsection 122(1)Footnote 1 and paragraph 123(b).

Spirits containing more than 7% of absolute ethyl alcohol (Sch. 4, s. 1)
Current rate Effective date
$11.696 per litre of absolute ethyl alcohol July 1, 2006
Historical rateFootnote 2 Period
$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 (Sch. 4, s. 2)
Current rate Effective date
$0.295 per litre of spirits July 1, 2006
Historical rate Period
$0.2459 per litre of spirits July 1, 2003 to June 30, 2006

Special duty on spirits

2. A special duty is also imposed on spirits under subsection 133(1), and is payable on imported spirits delivered to or imported by a licensed user.

Spirits containing more than 0.5% of absolute ethyl alcohol (Sch. 5)
Current rate Effective date
$0.12 per litre of absolute ethyl alcohol July 1, 2003

Excise duty on wine

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

Wine containing more than 7% of absolute ethyl alcohol [Sch. 6, para (c)]
Current rate Effective date
$0.62 per litre July 1, 2006
Historical rate Period
$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 [Sch. 6, para (b)]
Current rate Effective date
$0.295 per litre July 1, 2006
Historical rate Period
$0.2459 per litre July 1, 2003 to June 30, 2006
Wine containing not more than 1.2% of absolute ethyl alcohol [Sch. 6, para (a)]
Current rate Effective date
$0.0205 per litre July 1, 2003

Excise duty on tobacco products

4. Excise duty is imposed on tobacco products under subsection 42(1).

Cigarettes [Sch. 1, para 1(b)]
Current rate Effective date
$0.425 per five or fraction of five cigarettes contained in any package January 1, 2008
Historical rate Period
$0.41025 per five or fraction of five cigarettes contained in any package July 1, 2006 to
December 31, 2007
$0.396255 per five or fraction of five cigarettes contained in any package July 1, 2003 to
June 30, 2006
Tobacco sticks [Sch. 1, para 2(b)]
Current rate Effective date
$0.085 per stick February 27, 2008
Historical rate Period
$0.06325 per stick January 1, 2008 to February 26, 2008
$0.0605 per stick July 1, 2006 to December 31, 2007
$0.057983 per stick July 1, 2003 to June 30, 2006
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 1, para 3(b)]
Current rate Effective date
$5.3125 per 50 grams or fraction of 50 grams contained in a package March 22, 2013
Historical rate Period
$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
$55.90 per kilogram July 1, 2006 to
December 31, 2007
$53.981 per kilogram July 1, 2003 to
June 30, 2006
Raw leaf tobacco (Sch. 1, s. 5)
Current rate Effective date
$1.572 per kilogram July 1, 2003
Cigars (Sch. 1, s. 4)
Current rate Effective date
$18.50 per 1,000 cigars January 1, 2008
Historical rate Period
$16.60 per 1,000 cigars July 1, 2006 to December 31, 2007
$14.786 per 1,000 cigars July 1, 2003 to June 30, 2006

Additional duty on cigars

5. An additional duty is also imposed on cigars under section 43.

Current rate Effective date
Greater of $0.067 per cigar and 67%* (Sch. 2) January 1, 2008
Historical rate Period
Greater of $0.066 per cigar and 66% July 1, 2006 to December 31, 2007
Greater of $0.065 per cigar and 65% July 1, 2003 to June 30, 2006

* That is, 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.)

Excise duty on black stock tobacco productsFootnote 3

6. Excise duty is imposed on black stock tobacco products under subsection 42(1).

Cigarettes [Sch. 1, para 1(a)]
Current rate Effective date
$0.374875 per five or fraction of five cigarettes contained in any package July 1, 2003
Tobacco sticks [Sch. 1, para 2(a)]
Current rate Effective date
$0.074975 per stick February 27, 2008
Historical rate Period
$0.054983 per stick July 1, 2003 to February 26, 2008
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 1, para 3(a)]
Current rate Effective date
$4.685938 per 50 grams or fraction of 50 grams contained in a package March 22, 2013
Historical rate Period
$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

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

7. Under subsection 53(1), a special duty is imposed on imported manufactured tobacco that is delivered to a Canadian duty free shop.

Cigarettes [Sch. 3, para 1(a)]
Current rate Effective date
$0.075 per cigarette July 1, 2003
Tobacco sticks [Sch. 3, para 1(b)]
Current rate Effective date
$0.074975 per stick February 27, 2008
Historical rate Period
$0.054983 per stick July 1, 2003 to February 26, 2008
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 3, para 1(c)]
Current rate Effective date
$4.6875 per 50 g or fraction of 50 g contained in a package March 22, 2013
Historical rate Period
$2.50 per 50 g or fraction of 50 g contained in a package July 1, 2008 to March 21, 2013
$0.05 per gram July 1, 2003 to June 30, 2008

Special duty on traveller’s tobacco

8. A special duty is imposed on traveller’s tobacco under subsection 54(2).

Cigarettes [Sch. 3, para 2(a)]
Current rate Effective date
$0.075 per cigarette July 1, 2003
Tobacco sticks [Sch. 3, para 3(b)]
Current rate Effective date
$0.075 per stick February 27, 2008
Historical rate Period
$0.055 per stick July 1, 2003 to February 26, 2008
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 3, para 2(c)]
Current rate Effective date
$4.6875 per 50 grams or fraction of 50 grams contained in a package March 22, 2013
Historical rate Period
$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

Special duty on unstamped tobacco products manufactured in Canada and exported

9. A special duty is imposed under paragraph 56(1)(a) on unstamped tobacco products manufactured in Canada and exported in accordance with paragraph 50(4)(a).

Cigarettes [Sch. 3, para 3(a)]
Current rate Effective date
$0.075 per cigarette July 1, 2003
Tobacco sticks [Sch. 3, para 3(b)]
Current rate Effective date
$0.075 per stick February 27, 2008
Historical rate Period
$0.055 per stick July 1, 2003 to February 26, 2008
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 3, para 3(c)]
Current rate Effective date
$93.75 per kilogram March 22, 2013
Historical rate Period
$50 per kilogram June 19, 2003 to March 21, 2013

Special duty on stamped tobacco products manufactured in Canada and exported

10. A special duty is imposed under paragraph 56(1)(a) on unstamped tobacco products manufactured in Canada and exported in accordance with paragraph 50(4)(a).

Cigarettes [Sch. 3, para 4(a)]
Current rate Effective date
$0.095724 per cigarette February 27, 2008
$0.068224 per cigarette June 19, 2003 to February 26, 2008
Tobacco sticks [Sch. 3, para 4(b)]
Current rate Effective date
$0.095724 per stick February 27, 2008
Historical rate Period
$0.042 per stick June 19, 2003 to February 26, 2008
Manufactured tobacco – other than cigarettes and tobacco sticks [Sch. 3, para 4(c)]
Current rate Effective date
$5.98275 per 50 grams or fraction of 50 grams contained in a package March 22, 2013
Historical rate Period
$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

 

Footnotes

Footnote 1

All legislative references are to the Excise Act, 2001

Return to footnote 1 referrer

Footnote 2

For historical purposes, rates from July 1, 2003 have been included, where applicable.

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Footnote 3

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.

Return to third footnote 3 referrer

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.