Adjusted Rates of Excise Duty on Beer Effective April 1, 2022

Excise Duty Notice EDBN29

June 2022

This version replaces the one dated February 2022. This notice has been revised as a result of amendments to the Excise Act.

This notice provides information about the adjusted rates of excise duty that become payable on beer on or after April 1, 2022.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or contact any Canada Revenue Agency (CRA) regional excise office for additional information. These offices are listed at Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge.

General

Under the Excise Act, the rates of excise duty on beer are adjusted annually every April 1 based on changes to the Consumer Price Index.

Beer includes malt liquor.

The adjusted rates of excise duty that become payable on beer on or after April 1, 2022, are listed in the tables below.

Regular rates of excise duty on beer packaged in Canada

The regular rates of excise duty were determined in accordance with Part II of the Schedule to the Act. They apply to the following:

Non-alcoholic beer produced on or after July 1, 2022, is not subject to excise duty.

Adjusted regular rates of excise duty on beer packaged in Canada
Product Rate effective April 1, 2022
Beer containing not more than 1.2% absolute ethyl alcohol by volume  $2.890 per hectolitre
Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume $17.41 per hectolitre
Beer containing more than 2.5% absolute ethyl alcohol by volume $34.82 per hectolitre

Reduced rates of excise duty on beer brewed by domestic brewers

The reduced rates of excise duty were determined in accordance with Part II.1 of the Schedule to the Act. They apply to the first 75,000 hectolitres of beer brewed in Canada (production volume limit) each calendar year by a licensed brewer and any person related to or associated with that brewer.

Adjusted reduced rates of excise duty on beer containing not more than 1.2% absolute ethyl alcohol by volume
Annual production volume increments Rate effective April 1, 2022
0 to 2,000 hectolitres $0.2890 per hectolitre
2,001 to 5,000 hectolitres $0.5780 per hectolitre
5,001 to 15,000 hectolitres $1.1560 per hectolitre
15,001 to 50,000 hectolitres $2.0230 per hectolitre
50,001 to 75,000 hectolitres $2.4565 per hectolitre
Adjusted reduced rates of excise duty on beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume
Annual production volume increments Rate effective April 1, 2022
0 to 2,000 hectolitres $1.741 per hectolitre
2,001 to 5,000 hectolitres $3.482 per hectolitre
5,001 to 15,000 hectolitres $6.964 per hectolitre
15,001 to 50,000 hectolitres $12.187 per hectolitre
50,001 to 75,000 hectolitres $14.799 per hectolitre
Adjusted reduced rates of excise duty on beer containing more than 2.5% absolute ethyl alcohol by volume
Annual production volume increments Rate effective April 1, 2022
0 to 2,000 hectolitres $3.482 per hectolitre
2,001 to 5,000 hectolitres $6.964 per hectolitre
5,001 to 15,000 hectolitres $13.928 per hectolitre
15,001 to 50,000 hectolitres $24.374 per hectolitre
50,001 to 75,000 hectolitres $29.597 per hectolitre

For a listing of current and historical rates of excise duty on beer, go to Excise Duty Rates.

Further information

For all technical publications related to the Excise Act and its regulations, go to Excise duties technical information under the Excise Act.

To make a general or technical enquiry on excise duties or request a ruling or interpretation related to excise duties, go to Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge.

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