Adjusted Rates Of Excise Duty On Beer, Spirits And Wine

Effective April 1, 2024, the Canadian government has revised the Excise Duty rates for beer, spirits and wine, instituting a temporary freeze on annual rate increases for the next two years.

What is Excise Duty?

Excise duties are taxes that are charged on various products such as beer, spirits, wine and tobacco. The rates of these duties are outlined in the Excise Act, 2001.

For goods manufactured in Canada, duties are payable at the time of packaging, rather than at the point of sale. In contrast, for imported goods, the importer is responsible for covering these duties.

Each year on April 1, excise duties are typically adjusted to mirror the changes reflected in the Consumer Price Index. The adjustments of excise duty on beer, spirits and wines were capped at 2% for an additional 2 years on June 20, 2024, when Bill C-69, Budget Implementation Act, 2024, No. 1, received royal assent.