A new Excise Tax Act was enacted on 18 March 2017 and published
in the Royal Gazette on 20 March 2017. The new law will
become effective in September 2017 (180 days after publication in
the Royal Gazette) and will replace and consolidate the existing
excise tax laws, including the Tobacco Act, Liquor Act and the
current Excise Tax Act.
What is an Excise Tax?
An excise or excise tax is an inland tax on the sale,
or production for sale, of specific goods or a tax on a good produced for
sale, or sold, within a country or licenses for specific
activities. Excises are distinguished from customs duties, which are taxes on importation.
Excise taxes are commonly levied on luxury items and goods or
services that carry health or other costs that society, as a whole,
must bear. Tobacco, alcohol and gasoline are typically
subject to excise taxes because of the social costs they
create.
