Increased Duty Rates | March 30, 2022
Canadian produced beer, wine, and spirits are subject to excise duty under the Excise Act (beer) or the Excise Act, 2001 (wine and spirits). The duty is payable by the producer at time of packaging. These duties are on a per litre basis for wine, a per litre basis for spirits of ≤ 7% alcohol by volume, a per litre of absolute ethyl alcohol basis for spirits of > 7% ABV, and per hectolitre for beer. There is a sliding scale of rates for smaller breweries producing beer in increments up to 75,000 HL.
Per the Customs Tariff, alcohol imports are also subject to excise duty at the rates set out in the Excise Act or Excise Act, 2001 respectively, so also subject to the escalator.
Bill C-44 Budget Implementation Act No. 2 (42-1) created an automatic escalator by amending the Excise Act and Excise Act, 2001 to INCREASE THE DUTY RATES on alcohol by 2% in 2018 and to introduce the concept of the “inflationary adjusted year” which ties the duty rates to annual inflation as reported in the Consumer Price Index. Duty rates have increased each year since on April 1.
Conservatives opposed the excise escalator when the Liberals first introduced it and we will continue.
We need to continue to support small businesses in this sector.